Volkswagen AG employees are getting a pay raise: a 1,000-euro COVID-19 bonus in June, and 600 euros for apprentices. In January 2022, monthly wages will increase by 2.3 percent in accordance with the pay scale, effective through November 30, 2022. IG Metall and Volkswagen reached this collective bargaining agreement this morning after 13 hours of negotiations. Volkswagen operates under its own in-house collective bargaining agreement, which differs from the regional collective bargaining agreement for the metal and electrical industry.
Choice Between Cash and Time Off for Everyone
In addition, all employees will now have the option to exchange a portion of the Collective Bargaining Supplement (T-ZUV)—equivalent to 27.5 percent of a monthly salary—for three days off. Previously, this option—similar to the choice available for the Collective Bargaining Bonus (T-ZUG) in the metal and electrical industry—was only available to employees under particular strain, such as those with children, dependents requiring care, or those working shifts.
1,400 new apprentices and dual-track students per year
Volkswagen has committed to hiring 1,400 new apprentices and dual-track students each year. This commitment is valid through the end of 2025.
In the future, the collective bargaining agreements for apprentices will apply to dual students at VW—including those in practice-integrated programs.
140,000 warning strike participants applied pressure
Despite the crisis, the VW Group is in good shape and posted a profit of 8.8 billion euros after taxes in 2020. Nevertheless, negotiations have dragged on since January.
“More than 140,000 warning strikers at various Volkswagen locations and at VW subsidiaries have impressively demonstrated that we are fully capable of taking action even under pandemic conditions—wearing masks and maintaining social distancing,” explains Thorsten Gröger, chief negotiator and regional director of IG Metall Lower Saxony-Saxony-Anhalt. “Without this commitment, this agreement would not have been reached.”
A Strong Agreement in the Time of COVID-19
The in-house collective bargaining agreement at Volkswagen applies to the VW plants in Wolfsburg, Braunschweig, Hanover, Salzgitter, Emden, and Kassel, as well as to Financial Services AG, Volkswagen Immobilien GmbH, and Volkswagen Vertriebsbetreuungsgesellschaft mbH. In addition, IG Metall views the outcome as a benchmark for collective bargaining rounds at other subsidiaries, such as Sitech, Volkswagen Group Services, Autostadt, Wolfsburg AG, and AutoVision.
“This is a strong agreement during the COVID-19 pandemic, and employees are very satisfied,” says Bernd Osterloh, Chairman of the VW General Works Council. “The option for all employees to choose more days off is a real breakthrough. We want to continue this in the coming years. After all, greater individual flexibility in choosing between pay and time off is a major priority for the workforce. Our guarantee for vocational training, extended through 2025, sends the right signal: Our young talent has a future at VW.”
Learn more about the collective bargaining agreement at Volkswagen from IG Metall Lower Saxony-Saxony-Anhalt
