German Manager Magazin: Volkswagen: IG Metall demands 8 percent more for VW employees001896

Volkswagen a hard bargaining round is imminent. the IG Metal calls for 8 percent higher wages over a period of twelve months for the 125,000 VW employees in western Germany in the forthcoming negotiations on a new in-house wage agreement. The union, which is strongly represented at the carmaker, justifies the demand with the increased inflation and excellent business figures from Volkswagen.

“Our substantive collective bargaining demand fits in with the times,” explained negotiator Thorsten Gröger. Inflation destroys prosperity, puts incomes into perspective and puts many households in economic difficulties. Only at the end of June did Volkswagen boss Herbert Diess (63) in front of the workforce in Wolfsburg good business situation of the group and the employees committed to catching up with Tesla.

The wage demand corresponds to that which the union would like in view of the high profits of car companies bmw and Mercedes-Benz for the 3.9 million employees in the metal and electrical industry nationwide. Apprentices should also earn more accordingly.

Partial retirement and conversion of wages into days off are also an issue

Gröger explained that the union would bring its arguments into the negotiations with the employer in the fall. “If necessary, with a large mobilization of employees on the street and in front of the factory gates!” Volkswagen announced that they had taken note of IG Metall’s position, but would not comment on the union’s demands before the start of collective bargaining talks.

In addition to a permanent wage increase, the union is demanding an extension of the collective agreement for partial retirement and improvements in the conversion of wages into days off. For dual students, IG Metall also requires Volkswagen to pay the semester fees.

VW works council chief Daniela Cavallo (47) emphasized the point of converting pay into days off: “The employer side should readjust here.” So far, for example, employees who have to care for relatives at home have been able to make use of the regulation.

At VW, IG Metall traditionally negotiates an in-house wage agreement for the employees in the six west German plants, the group’s own financial service provider Financial Services and some subsidiaries. Negotiations at VW from October are to take place at a later date than the entire industry. The peace obligation ends on November 30th. From then on, the union can call for warning strikes.

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