Germany: VW workers mull increase above inflation of salaries image

Europe’s largest automotive market is also home to some of the most important carmakers in the world. The highly regulated workforce law has allowed German workers to have among the highest paid salaries in the automotive industry.

When it comes to Volkswagen – Europe’s biggest automaker and the second in the world – the situation doesn’t seem to have any chance of being changed – especially when we think about the power the worker unions have inside the company’s board of directors.

Now, VW’s workers in Germany are said to ask for pay rises to be higher than inflation, with the new salaries to be negotiated in 2015. The news comes just as executives at the carmaker are mulling a strategy to further reduce overall costs and buoy the profitability of the passenger car core brand. The VW nameplate has been lagging when it comes to the return figure and the recent problems experienced by the automaker with the multimodal MQB platform have been a drag also.

According to the Group’s main labor unit – IG Metall – also the largest labor federation in Germany, the management will be asked to offer pay rises above the inflation level for the 100,000 employees at VW’s six western German assembly facilities.

Hartmut Meine, chief negotiator for the union, said he expects the wage increase to be a tough negotiation, adding that the union will set forth more exact claims in November, approximately three months before the in-house contracts would expire, in February 2015.

Via Automotive News Europe