Volkswagen and IG Metall have agreed a wage increase of 4.3 percent – the German carmaker said today. The 13-month pay agreement for some 102,000 workers reached Thursday runs from June 1 through June 2013.
“This is an acceptable compromise,” said Hartmut Meine, chief negotiator for IG Metal.
The agreement with VW follows an agreement between IG Metal and businesses in the sector on 19 May that covered around 3.6 million German metal workers, including those of Daimler and BMW.
“Workers will earn a decent pay increase,” Martin Rosik, VW’s chief negotiator said at the press conference.
Yet, the size of the wage increase will not lessen pressure on VW which is facing growing headwinds from volatile financial markets and slowing European economies, he said.
Germany’s economy, Europe’s biggest, grew strongly over the past two years — thanks partly to exports of cars and machinery. This year, unions demanded hefty pay increases.