Austerity measures planned
Volkswagen wants to cut wages & bonuses
Volkswagen is currently negotiating the wages of its employees (see video above). There is talk of abolishing bonus payments and reducing collectively agreed wages by ten percent. Around 120,000 people work for the German company.
Now the cost-cutting pen is to be applied. The management has stated that the car manufacturer's competitiveness is at risk. There is talk of plant closures, with compulsory redundancies possible from mid-2025.
The current wage negotiations for employees are also characterized by austerity measures: Collective wages are to fall by ten percent and anniversary payments are to be abolished. "We have made this proposal," confirmed a company spokeswoman on Saturday. According to the current collective agreement, a one-off payment of 1.45 times the monthly salary is made for 25 years of service. For 35 years at the plant, 2.9 times this amount is paid.
Thousands affected
Thousands of employees would be affected by the abolition. The Works Council estimates that 5,000 to 6,000 people would be on the verge of receiving their anniversary payments. In two years, more than 10,000 employees would have received a bonus.
VW has around 120,000 employees in Germany, half of them in Wolfsburg. The car manufacturer has a total of ten plants in the neighboring country. The company has not yet announced which and how many of these could be closed.
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