IG Metall achieves higher wages: Agreement on collective agreement at VW

Status: 23.11.2022 09:05 a.m

Breakthrough in the third round: VW and IG Metall have reached an agreement in collective bargaining. The approximately 125,000 employees will receive 8.5 percent more wages in two steps – and a one-off payment.

The approximately 125,000 employees at Volkswagen in western Germany receive a substantial wage premium in view of the high inflation. After a marathon of negotiations lasting more than twelve hours, a new in-house wage agreement was reached, IG Metall announced. VW confirmed the agreement.

Employees can expect more money in two stages. Remuneration and training allowances will be increased by 5.2 percent from June 2023 and by a further 3.3 percent from May 2024. As in the area, the term is 24 months, said IG Metall.

Extension of partial retirement

The VW employees will also receive an inflation compensation premium of 3,000 euros, which according to IG Metall will be divided into two tranches in February 2023 (2,000 euros) and January 2024 (1,000 euros). Apprentices should each receive half. VW explained that the payments flowed in March.

The partial retirement scheme in force at VW has been extended until the end of 2027. In addition, the parties to the collective agreement agreed to improve the leave periods. The employees can choose whether they collect the collectively agreed additional remuneration or convert it into days off. According to the union, all employees can now take up to six days off instead of the previous three days. The collectively agreed number of 1400 training places per year has not been touched.

Agreement after three rounds

“We have reached an agreement within the peace obligation in an exceptional macroeconomic situation, with which we are ensuring sustainable planning security and stability for both employees and companies,” said VW negotiator Arne Meiswinkel. According to IG Metall, both parties negotiated for more than twelve hours in the third round.

Thorsten Gröger, IG Metall negotiator, said: “More than 4,000 employees increased the pressure on employers at the second negotiation.” VW got the curve again shortly before the end of the peace obligation. “I don’t want to hide the fact that the argument wasn’t easy – that alone shows the extremely long duration of the negotiations that night.”

union demands

The VW company tariff was negotiated for the core workforce at the Braunschweig, Emden, Hanover, Kassel, Salzgitter and Wolfsburg locations as well as some subsidiaries. The union had demanded a pay increase of eight percent for around 125,000 employees, an extension of the collective agreement on partial retirement, more days off for members of the union and the assumption of the semester fees for dual students at the company.

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