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VW to Lift Hourly Wages 4.8% in Germany
Volkswagen AG has agreed to raise pay for some 120,000 hourly workers in Germany by nearly 5% over the next two years.
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Volkswagen AG has agreed to raise pay for some 120,000 hourly workers in Germany by nearly 5% over the next two years.
The pact with the IG Metall labor union will increase wages 2.8% on Sept. 1 and another 2% in August 2017. The union had demanded a 5% pay hike over 12 months.
VW also will make an extra pension contribution of €200 ($224) per worker. The 20-month agreement will expire at the end of 2018.
The new contract comes after Bernd Osterloh, who heads VW’s works council, declared that hourly workers would not be made to shoulder part of the multi-billion-euro financial exposure of the company’s diesel emission cheating scandal.
Last week VW announced it will pay its hourly employees in Germany profit sharing of €3,950 ($4,400) each for their work in 2015. Workers received €1,500 of the total at the end of last November. Future profit sharing will be calculated based on a two-year period.
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