Among other things, the anniversary bonuses should no longer be given. “We have made this proposal,” said a company spokeswoman on Saturday. According to the works council, thousands of VW employees are about to receive anniversary bonuses, which the board now wants to cancel.
The “Business Insider” and the editorial network Germany had previously reported on it. According to the current collective agreement, 1.45 times a monthly salary is paid out as an additional one-off gross amount for 25 years of service and 2.90 times a monthly salary for 35 years of service.
More on the topic
Warren Buffett’s investment firm spurns stocks – even its own
As was reported from works council circles, as of March 31, 2024, almost 6,000 employees at VW were about to celebrate their relevant anniversaries: As a result, almost 2,000 employees had been with the company for 24 years and around 4,000 employees had been with the company for 34 years. Some of them may have already received the special payments – September is a traditional recruitment month because training begins on September 1st.
Many employees would receive anniversary payments
But the number of employees who have been with the company for 23 or 33 years is also high – in works council circles, there are 5,000 to 6,000 VW employees who are close to receiving their anniversary payments. If you include employees who are only waiting two or fewer years for an anniversary, more than 10,000 employees are affected.
Volkswagen wants to implement austerity measures in collective bargaining and, among other things, reduce collective wages by ten percent. Management sees the car manufacturer’s competitiveness at risk. In September, the company canceled the job security that had been in place for more than 30 years. Redundancies for operational reasons would be possible from the middle of next year. Volkswagen also mentioned plant closures, but without naming a specific number or location.
VW employs around 120,000 people in Germany, around half of them in Wolfsburg. The VW brand operates a total of ten plants in Germany, six of which are in Lower Saxony, three in Saxony and one in Baunatal in northern Hesse.
ePaper
Thuringia. The company’s plans to implement austerity measures have raised concerns among employees regarding job security and future benefits.
Volkswagen’s management emphasizes the necessity of these cost-cutting measures to maintain competitiveness in a rapidly evolving automotive market, especially with the shift towards electric vehicles and increasing competition. The decision has sparked a mixed reaction, with some employees worried about the implications of job losses and the reduction in anniversary payments.
As the automotive industry faces challenges, including supply chain disruptions and changing consumer preferences, VW is tasked with balancing financial stability and employee welfare. The discussions around the potential reduction of collective wages and the risk of redundancies are particularly poignant, considering the company’s historical commitment to employee job security.
For many employees, the upcoming anniversary payments serve as a reminder of their long tenure with the company, underscoring their contributions over the years. However, uncertainties about the future may overshadow these celebrations as they navigate the implications of Volkswagen’s restructuring plans.
