Volkswagen and IG Metall agreed to a new contract late Monday night. Workers will receive a 3.2% increase in base pay effective May 1, 2011. Employees will also receive a one-time payment corresponding to 1% of his or her annual pay, but no less than €500, VW said in a statement.
The agreement is a clear victory for workers since a previously agreed increase in pay has been moved forward by eight months as economic conditions improve.
Under the previous regional collective wage agreement for the metal industry, the pay increase would not come into effect until January 1, 2012. A VW negotiator said that it was signed under times of crisis and things have improved since then.
“The company and IG Metall have found a fair solution that offers a very decent rise in pay while preserving competitiveness,” Dr. Horst Neumann, Member of the Board of Management of Volkswagen AG.
German autoworkers have long been he highest paid in the world, an indication of the effectiveness of German governess industrial policies and the strong export-oriented sales of VW, Audi, Porsche, BMW and Mercedes-Benz.
Jochen Schumm, chief negotiator for Volkswagen, said, “Unlike a fixed sum, this represents a clear increase of one percent for everyone and has a social component.”
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
