German unions rejected VW pay offer

Article by Christian A., on February 25, 2011

German unions turned down Volkswagen AG’s offer, which would raise the salaries of the workers by 2.9 percent over the next two years and give them a one-time payment of EUR300 before the end of June 2011.

Under the offer, not only would the 100,000 western German workers at VW receive about half of the sum they want, their pay would effectively be frozen for the second year of the contract.

Hartmut Meine, IG Metall’s chief negotiator, recently said that the difference between demand and offer is much too big and the length of the deal has to be shorter and the proposed pay hike higher.

He added that the VW should consider that success can only be sustainably guaranteed with the team. Economists are monitoring developments in German wages as a signal both for a potential improvement in household spending and for second-round inflationary effects.

The talks between VW and its workers is an indicator for 2012's collective wage bargaining in the engineering sector. In talks with VW, IG Metall is demanding a 6 percent pay increase for the next 12 months.

Jochen Schumm, VW’s chief negotiator, said the offer's length was aligned on the current 23-month wage deal in the engineering industry, where workers received a pay freeze in the first year and are now set to get 2.7 percent more starting in April 2011, at the latest. [via autonews - sub. required]

Topics: vw, germany

If you liked the article, share on:

Comments

Recommended

Another day, another record. Is the new Dodge Challenger SRT Demon the fastest car to date? According to some sources, the Dodge Challenger SRT Demon had just beaten the Tesla...
by - April 24, 2017
Following in the footsteps of the McLaren 570S, 540C and 570GT is the newest addition to the McLaren Sports Series -- the roofless 570S Spider. McLaren 570S was rolled out...
by - April 24, 2017
The British automaker Lotus is noted for releasing low production, limited editions of its sports car lineage. Now the Hethel-based automobile manufacturer is back at it again with its latest...
by - April 24, 2017
Earlier this week, the revamped 2018 Mercedes-Benz S-Class was revealed ahead of the 2017 Shanghai Auto Show. As expected, Mercedes Benz’s flagship model is now offered in several variants including...
by - April 24, 2017
Well, this is clearly not good news for everyone. Ever since the new BMW M4 CS rolled out in Shanghai last week, several reports about its limited production have quickly...
by - April 24, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries