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

The Chevrolet Corvette will be turning 65 years old in 2018, and as part of the celebrations, the brand is introducing a special edition C7 – the Chevrolet Corvette Carbon...
by - November 19, 2017
Tesla revealed that with its new Semi, truck drivers can expect better experience especially with heightened safety and the lower cost of transporting cargo. Indeed, the cabin of the new...
by - November 19, 2017
November 17 is considered a very special day for Tesla, as this is the day that they revealed the highly anticipated Tesla Semi. But Elon Musk did not think the...
by - November 17, 2017
More details have emerged about the new sixth generation of the BMW M3 just as the German premium practically announced the end of the current-gen 3 Series with the unveiling...
by - November 17, 2017
All is set for Volkswagen’s plans to enter the electric vehicle game, as prompted by the so-called Dieselgate scandal. In fact, the German carmaker has already made a commitment to...
by - November 17, 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