Volkswagen’s approximately 125,000 employees will receive a 5.2 percent raise followed by a 3.3 percent raise, plus a 3,000-euro inflation adjustment bonus—also in two stages. IG Metall and Volkswagen reached this agreement for the new in-house collective bargaining agreement after 12 hours of negotiations. The agreement was reached in the third round of negotiations, one week before the expiration of the peace obligation.
The collective bargaining agreement in detail
The bargaining parties agreed to a pay scale increase of 5.2 percent for wages and apprenticeship stipends effective June 1, 2023, followed by an additional 3.3 percent effective May 1, 2024. As is standard in the industry, the agreement is valid for 24 months.
In addition, VW employees will receive an inflation adjustment bonus of 3,000 euros, to be paid in two installments: 2,000 euros in February 2023 and 1,000 euros in January 2024. Apprentices will receive half of each amount. These one-time payments are tax- and contribution-free, meaning the gross amount equals the net amount.
The conversion option “days off instead of more money” for the collective bargaining-based supplementary payment (T-ZUV) will be fully available to all employees: In the future, they can choose between three options: cash only via the 27.5 percent extra payment in August; a 50-50 split of 13.75 percent plus three days off; or the full conversion to six days off.
Apprenticeship positions will be maintained
The collective bargaining agreement on partial retirement will continue under the existing terms and be extended through December 31, 2027.
The subsidy for semester fees for all dual-track students will be significantly increased: Dual-track students will now receive 395 euros to cover their university fees (up from 350 euros). In addition, VW will now transfer the fees on time, so that students no longer have to pay the universities out of pocket in advance. The existing performance-based one-time payment (LOE) will be set at 500 euros for all dual-track students and apprentices, which is noticeably higher than the previous average rate (467 euros). It will increase in line with collective bargaining agreements and will continue to be paid out in May.
The previously established quota of 1,400 training positions per year will remain unchanged. A VW Master’s program and additional scholarships will be added to the existing framework.
“A Solid Agreement in Difficult Times”
Thorsten Gröger, IG Metall’s chief negotiator, stated this morning: “More than 4,000 employees ramped up the pressure on management during the second round of negotiations. This led Volkswagen to finally back down and present an offer at the third meeting that was open to negotiation. VW thus managed to turn things around just before the end of the peace obligation period. I won’t mince words: the dispute wasn’t easy—as evidenced by the extremely long negotiations that lasted into the night.”
Daniela Cavallo, Chair of the General Works Council, says: “We’ve managed to reach a truly solid agreement during difficult times. Our colleagues will quickly see a noticeable increase in pay. In addition, key VW issues such as partial retirement and more days off have been addressed. We at Volkswagen are thus proving once again that the important concerns of our well-organized workforce do not take a back seat, even during a crisis.”
The company-level collective bargaining agreement was negotiated by the IG Metall district of Lower Saxony and Saxony-Anhalt. It applies to the six western German locations of Volkswagen AG (Braunschweig, Emden, Hanover, Kassel, Salzgitter, Wolfsburg) as well as to the subsidiaries Financial Services, Real Estate, and dx.one GmbH. The collective bargaining agreement is valid through November 30, 2024. The deadline for filing a notice of acceptance is December 7, 2022.
Further details and background information: tarifrunde-vw.de
