Germany: Volkswagen staff set to receive a 4.3% pay rise and a revaluation of their company pensions

In Hanover on the evening of 20/21 February 2018 difficult negotiations came to a successful conclusion between Volkswagen management and the IG Metall union; negotiations which for the first time in a decade were marked by warning strikes. A new ‘in-house collective agreement’ was struck and will apply to the 120,0000 employees across the automaker’s six German facilities as well as the company’s financial division Volkswagen Financial Services AG. In line with the recently concluded metals sector collective agreement, the VW accord intends for a 4.3% salary rise, an additional supplement that certain employee categories can exchange for ‘free-time’, and a sharp revaluation in the company pension. The new agreement will run for 27 months (01 February 2018- 30 April 2020)
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Metals sector agreement- the benchmark. Both parties welcomed the agreement that was struck after difficult negotiations. VW chief negotiator Thorsten Gröger welcomed the agreement stating, “It was a long road. After a wave of warning strikes, ineffective efforts aiming to provoke, such as the company’s demand for Christmas and New Year’s day to be included as working days, and of course a final night of negotiations, we have secured an agreement that employees at Volkswagen and its...

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