Vw to resist union calls for 6% more pay for 100,000 western German workers

Article by Christian Andrei, on January 25, 2011

As Volkswagen AG and the IG Metall labor union meet for the first set of wage negotiations, Europe’s largest carmaker will likely resist union calls for 6 percent more pay for 100,000 western German workers.

In 2010, VW sold a record 7.14 million cars and SUVs, a 14 percent increase from 2009. On Jan. 10, 2011, sales chief Christian Klingler said deliveries worldwide may increase another 5 percent in 2011.

VW plans to invest EUR51.6 billion ($70 billion) in the automotive business through 2015 to help reach its plan to surpass Toyota Motor Corp. in profit and sales.

Uwe Stoffregen, spokesman for IG Metall's pay negotiator Hartmut Meine, said IG’s pay position is totally justified. Stoffregen said IG Metall does not expect VW to propose a pay offer in the talks. By 2015, VW plans to create 50,000 jobs globally, with around 10 percent of the new positions in Germany.

VW wants to increase salaries to follow a 2.7 percent raise for engineering workers agreed in February 2009.

VW personnel chief Horst Neumann has said that planned job openings in Germany require VW to improve its competitiveness, expressing opposition to a 6 percent pay increase.

Company spokesman Stefan Ohletz could not be reached for comment. [via autonews - sub. required]

Topics: vw, germany

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