Volkswagen AG Conclude Salary Negotiations

Photo credit: Volkswagen 

Negotiations have started for the 125,000 employees of Volkswagen AG, between those negotiating committees of Volkswagen AG are IG Metall Lower Saxony as well as Saxony-Anhalt. The negotiation process agreed that as of June next year the employees will receive a wage increase of 5.2 % and as of 2024 the employees will receive a 3.3 % increase. Volkswagen is committed as of January 2023 to pay its employees an inflation compensation bonus, the payment will be tax-free. Volkswagen students and apprentices will receive half of the payment. 

“We have achieved certainty and long-term planning stability for Volkswagen for 24 months. This agreement takes into account the exceptionally challenging and persistently volatile macroeconomic environment. The strong signal given by an agreement that was reached before the expiration of the duty to refrain from strike action also testifies to our responsibility towards our workforce and the company¨ announced chief negotiator Arne Meiswinkel.

Volkswagen will make the introduction of a new forward-looking scholarship program helping the company to target students with a bachelor’s degree and according to Meiswinkel, the new scholarship program will make a major contribution to Volkswagen’s transformation for the first time, tailoring training opportunities to the needs of the company and attracting enough talented and qualified young people to help Volkswagen’s growth and transformation. Students who acquire the scholarship will have the great opportunity to gain hands-on experience in the company and will be able to start their careers at Volkswagen upon completion of their master’s degree. Each year Volkswagen will offer 1,400 training places agreed in the collective bargaining agreement. 

Volkswagen will increase the student fee per semester starting in 2023. According to the final collective agreement, the new apprentices and students who excel in their performance will receive a payment of 500 euros instead of a one-off payment. The collective agreement for partial retirement has been extended for five years until December 31, 2027, because for Volkswagen the instrument is a fundamental tool that helps the company to further advance the transformation into a sustainable mobility company that focuses on software and managing its personnel requirements.  

Volkswagen AG and IG Metall agreed to allow in each year all employees to convert their overtime payments into six working days of paid vacation. Before Volkswagen and IG Metall agreed to this deal, this provision was only granted to employees who had stressful work and life schedules such as childcare and shift work. The provision whereby all employees can convert their overtime wages into paid vacation will begin in 2024.  The collective agreement between Volkswagen, IG Metall Lower Saxony, and Saxony-Anhalt is intended for the 125,000 employees at the companies in Wolfsburg, Braunschweig, Hannover, Salzgitter, Emden, and Kassel and applies equally to the employees of Volkswagen Financial Services AG, Volkswagen Immobilien GmbH and dx. one GmbH.

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