VW agreed to give 100,000 workers a 3.2 percent pay raise

Article by Christian A., on February 25, 2011

Volkswagen AG, the country’s biggest automotive employer, agreed to give 100,000 western German workers a 3.2 percent pay raise to prevent strikes as VW boosts production to meet record demand. The company said the pay increase takes effect on May 1, 2011, with workers receiving a one-time payment of one percent of their base annual salary for the first three months of the deal.

The deal with VW, which has 170,000 employees in Germany, may be a benchmark for other unions seeking a bigger reward for workers in a country leading Europe's economic recovery. The 16-month contract runs from Feb. 1, 2011 through May 31, 2012.

VW has plans to increase 2011 sales by five percent after record 2010 deliveries of 7.14 million vehicles.

VW is struggling to keep up with demand after a components shortage halted production at the main Wolfsburg factory in January 2011. VW's preferred shares increased as much as EUR2.20, or 1.9 percent, to EUR121.20 and were up 1.5 percent to EUR120.80 as of 10:35 a.m. in Frankfurt trading.

In 2011, the stock has dropped 0.5 percent, valuing the carmaker at EUR54 billion ($73.5 billion). Tim Schuldt, an analyst at Equinet AG in Frankfurt with a “buy” recommendation on the shares, said the deal reflects the high capacity utilization at VW.

He also believes that it means that the company wanted to avoid disruptions to production because of walkouts. [via autonews - sub. required]

If you liked the article, share on:

Topics: vw

Comments

Recommended

2017 was definitely a great year for Porsche as the automaker was able to break their sales record in the United States. Overall, they delivered a total of 55,420 vehicles,...
by - January 23, 2018
The 2018 Consumer Electric Show is full of exciting new technology for everyone, including the automotive industry. One of the most anticipated is the unveiling of the Linux-based MBUX that...
by - January 22, 2018
With all the photos Mercedes-Benz has been posting of the new 2019 G-Class, not one of those featured the SUV in a light exterior finish, as they were all in...
by - January 22, 2018
When you first glance at the Rhino GX SUV, the first thing that will come to mind is that the vehicle probably has a military style cabin, with thinly padded...
by - January 22, 2018
The Chinese market will soon be getting the exclusive China-only model, Mercedes-Benz GLC-L, for a premium of 15,000 yuan ($2,300) more than the regular model. The difference is actually quite...
by - January 20, 2018
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