Germany: for the first time, Volkswagen’s collective agreement includes a variable wage component based on performance

Towards more flexible wages. Disappointed that the group’s management refused claims accepted by Audi and Porsche, the IG-Metall threatened, last week, with launching warning strikes (see our dispatch No. 090868) if Volkswagen’s management refused to use the provisions of the agreement signed in metalworking in late 2008 (see our dispatch No. 080888). These threats vanished yesterday. Indeed, Hartmut Meine, IG-Metall negotiator, got more than he was hoping for. Jochen Schum, negotiator for the management, not only accepted to apply the metalworking agreement to the 90,000 “house” employees of VW, but he also added a new agreement replacing the previous agreement valid until the end of June 2009, a monthly bonus based on performance, a first at Volkswagen. For the management, this bonus was fundamental because, in the long run, it leads the way towards variable remuneration for employees and therefore a more “flexible” payroll. This bonus, paid as of 2011, should amount, in average, to €100 a month. To that end, the management and the central WC will sign a company agreement some time next year. This agreement will define the modalities to calculate the bonus.
Enjoy this article for free while you’re in your trial period
You have access to our content for 1 month.

ore than he was hoping for. Jochen Schum, negotiator for the management, not only accepted to apply the metalworking agreement to the 90,000 “house” employees of VW, but he also added a new agreement replacing the previous agreement valid until the end of June 2009, a monthly bonus based on performance, a first at Volkswagen. For the management, this bonus was fundamental because, in the long run, it leads the way towards variable remuneration for employees and therefore a more “flexible” payro

…
Do you have information to share with us?
What you absolutely must read this week
The essential content of the week selected by the editorial team.
See all
France: National Assembly votes for mandatory bargaining on sexual and gender-based violence
The news. On 8 October, French MPs voted to extend the scope of mandatory annual negotiations to sexual and gender-based violence (SGBV). In practice, in addition to pay, working hours and...
Living wage still struggles to align with social dialogue (study)
As part of its summer school on social dialogue, the ILO commissioned a study on the living wage. This concept, which takes workers' needs into account when determining wage levels and which major...
9 October 2026
Belgium: fourth wave of reforms to encourage the return to work of employees on long-term sick leave
The news. On 2 October, the Belgian Federal Council of Ministers approved on third reading a draft bill implementing the fourth wave of reforms under its “strengthened” policy on...
Germany: Employers’ representatives seek to limit the rights of works councils
The Employers' Federation of German Employers' Associations (Bundesvereinigung der Deutschen Arbeitgeberverbände - BDA) published a report at the end of September in which it proposes a...
Most viewed articles of the month on mind HR
What readers clicked on the most last month.
What readers clicked on the most last month.
1
AI: uneven integration but a global challenge for the world of work
The adoption of artificial intelligence (AI) in business is profoundly transforming the world of work, and some occupations are now under threat. However, the full extent of its effects remains...
2
France: Ministry of Labour unveils plan to accelerate the rollout of AI
On 22 September, the French Ministry of Labour presented a plan named Impulsion IA 2027 aimed at accelerating the adoption of AI by companies and employees. It contains 12 measures applicable from...
3
Netherlands: towards a ban on housing cost deductions from migrant workers’ wages
The news. On September 10, Dutch Minister of Social Affairs and Employment Hans Vijlbrief (centre-left) sent a letter to the House of Representatives, stating that he intends to prohibit employers...
4
Germany: AfD victory in Saxony-Anhalt raises concerns over labour supply and workplace cohesion
The rise of Germany’s far-right AfD, which could soon gain influence over migration policy in Saxony-Anhalt and, following elections on September 20, in Mecklenburg-Western Pomerania as well, is...
5
Denmark: introduction of a professional ID card for construction site workers
The news. On 3 September, the Danish Parliament adopted a bill introducing a mandatory professional ID card for people working on large construction sites. The card will include, among other...
6
UE: Commission proposes measures to facilitate “fair” worker mobility across the Union
The info. On 15 September, the European Commission adopted a series of measures aimed at encouraging “fair” worker mobility within the EU. It wants to remove the administrative...