During the night of 12/13 April and approximately two weeks after the metal industry’s pilot collective agreement was adopted (c.f. article No.12446), management at German car manufacturer Volkswagen and the IG Metall metalworkers' union signed a new ‘in-house collective agreement’ for the 120,000 employees of the six Western German plants. Although similar to that signed at the end of March in the metal industry, the VW agreement does have several specific features. In addition to a 2.3% salary increase from January 2022, and a single €1,000 lump sum ‘Covid bonus’ in June 2021, employees will also be able to convert some of the annual salary supplement into three additional days of vacation per year. The 23-month agreement expires on 30 November 2022.
Both sides satisfied. This is the largest in-house collective agreement in Germany. Adopted amid challenging circumstances, marked by the repercussions of the Covid-19 pandemic and the transition to e-mobility, the VW agreement has been welcomed by IG Metall. * “This is a major agreement (reached) during the pandemic. Employees are very satisfied,” commented Bernd Osterloh, chairman of VW’s central works council, and calling the possibility for all employees to choose more days off as ‘a real b
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