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.”
