Press Releases
28 September 2009
Volkswagen progresses with strategic further development of remuneration systems
Collective bargaining negotiations with IG Metall concluded
Wolfsburg / Hanover — Volkswagen and the IG Metall trade union today concluded their wage negotiations in Hanover having reached agreement on all key points: a pay rise in line with the increase agreed for the metal and electrical industry, the introduction of a performance-related remuneration component, partial retirement for employees born from 1955 to 1960, a commitment to continue to offer 1,250 new apprenticeships per year, with provisions concerning employment following completion of the apprenticeships based on performance.
The chief negotiator for Volkswagen AG, Jochen Schumm, said: "In difficult times we have reached an agreement that strengthens our competitiveness. Through the introduction of a performance-related remuneration component, we are progressing with the strategic further development of our remuneration systems and are taking an important step towards becoming the most attractive employer."
Agreement was reached on the following:
Pay: There will be a 4.2 percent increase in the pay of the 95,000 Volkswagen AG employees from January 1, 2010. In addition, two one-off payments have been agreed: 510 euros in mid-October and 200 euros at the end of February 2010. The wage agreement has a term of 18 months commencing retroactively on August 1, 2009 and ending on January 31, 2011. According to Schumm: "Our wage agreement is in line with the rise agreed for the metal and electrical industry. This was only achievable as part of a comprehensive package and because our demand for a performance-related remuneration component was met."
Performance-related remuneration component: An individual, performance-related remuneration component will be introduced for all employees covered by the collective wage agreement from 2011. The detailed provisions will be set out in a works agreement to be concluded by the end of September 2010. The performance-related remuneration component is oriented to a monthly sum of roughly 100 euros.
Apprenticeships and partial retirement: The present commitment to offer 1,250 new apprenticeships per year will be extended for a further two years until the end of 2011. From 2011, the present arrangements concerning the employment of apprentices following completion of their training will be replaced by new performance-based arrangements. Schumm commented: "First-class training for young people is a prerequisite for the successful future of the company and society. That is one reason in particular why we still need partial retirement arrangements. Legislative measures are called for in this context." The package also includes the extension of partial retirement arrangements for employees born from 1955 to 1960. The number of employees under the partial retirement scheme will be determined in line with annual personnel planning and will factor in the cost aspects.
Volkswagen and IG Metall also announced their intention to begin negotiations mid-2010 to extend the undertaking concerning safeguarding jobs and the future of locations which expires at the end of 2011.
