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VW Agrees to 4.3% Wage Hike in Europe
Volkswagen AG has agreed to pay annual bonuses and increase the wages for 120,000 of its hourly workers in western Europe by 4.3%, beginning in May.
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Volkswagen AG has agreed to pay annual bonuses and increase the wages for 120,000 of its hourly workers in western Europe by 4.3%, beginning in May.
Germany’s IG Metall union had demanded a 6% wage boost. Under the 27-month-long package, workers will receive a one-time €100 ($123) signing payment. They also have the option beginning in 2019 of taking an extra six days of vacation per year or receiving an annual bonus equal to 27.5% of their monthly pay.
Some workers will be allowed to take as many as six days off each year to care for young children or elderly parents. In return, VW will be able to assign 5%-10% of employees covered by the agreement to temporary extra work that raises their normal work week to 40 hours.
VW also agreed to triple the amount it pays into pension plans for covered workers to €90 ($111) per month. Those payments will rise to €98 in 2020.
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