On Monday, around three dozen former Volkswagen Group executives failed in their attempt to sue for salary increases and the second part of an inflation compensation amounting to 1,000 euros before the Braunschweig labor court. The plaintiffs had referred to a promise from March 2023, according to which benefits from the collective agreement concluded recently for all employees of Volkswagen AG should also apply to parts of management and non-tariff employees. Essentially it was about a wage increase of 3.3 percent. In February 2024, VW informed the plaintiffs that they would probably have to forego the benefits. The reason: “Earnings improvement programs at Volkswagen AG”, i.e. savings programs with which the group wants to react to weak sales and low returns. In total, around 100 managers in Braunschweig have filed suit. The first 26 cases were heard on Monday. As it became known in the afternoon, the court rejected the lawsuits in 23 cases. In three other cases, the plaintiffs are to submit written submissions before the judges want to decide in these cases at the beginning of November. It was previously expected that the plaintiffs would appeal to the next court in the event of defeat. No further details were initially known on Monday. The company says: “We are pleased that the court followed our legal opinion and welcome the chamber’s decision.”Second round in the struggle over house tariffVW had already initiated an austerity program last year. Management now wants to tighten this up because weak sales – especially in the market for electric cars – are causing ever greater pressure. There are plans to close factories, and the group has also terminated collective agreements and an employment guarantee, which will make large-scale layoffs possible. At the same time, VW is negotiating a new company collective agreement. The second round of negotiations on this set of rules for 120,000 employees of Volkswagen AG is planned for October 30th, the group and IG Metall announced on Monday. In the case of the lawsuits before the Braunschweig labor court, it concerns managers who largely control the company Some have already left after taking advantage of so-called “time securities”. This is a company social benefit with which employees can build up certain credits from their pay and working hours in order to be released before retirement. In addition to the lawsuits filed by former Volkswagen AG executives, there are also several similar cases filed by Volkswagen Bank and its subsidiary VW Financial Services, according to the court. A precise reason why their complaints were dismissed was not immediately available in the afternoon.More on the subjectThe Volkswagen Group crisis had recently drawn a lot of attention to employee remuneration. The company collective agreement offers employees some advantages over the area collective agreement in the metal and electrical industries. Especially in the “indirect area,” as VW calls its positions in administration and other departments beyond production, many employees are classified in high wage groups and therefore earn very well. The same applies to managers employed outside collective agreements. In the current negotiations about a new company tariff, IG Metall is demanding a wage increase of 7 percent, as is the case nationwide. VW, on the other hand, insists on “sustainable cost relief in order to be able to invest in new technologies and secure jobs.
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