Volkswagen agreed with German workers on new wages image

Volkswagen Ag, Europe’s largest carmaker said on Thursday that it has struck a pay deal with Germany’s engineering union IG Metall for the bulk of its German workers. However the German giant did not disclosed yet the outcome.

The union also declined to disclose the outcome of wage talks.

Yesterday a top German union official said IG Metall wants to proceed “quickly” with reaching an agreement with Volkswagen, and it’s operating from a “position of strength” after workers’ job actions in mid-May showed employees’ dissatisfaction with VW’s stance.

“Talks are progressing well… we’re close to an agreement,” Bernd Osterloh told reporters. He declined to elaborate as a final decision hasn’t been reached.

Germany’s largest labor union agreed with employers earlier this month to raise wages in the country’s engineering sector by 4.3 percent over 13 months.

The 4.3 per cent pay increase is at first glance the largest annual raise IG Metall has won for its members since 1992, a fact which union officials were keen to stress after the negotiators reached the deal last week.

But as the deal runs over 13 months instead of 12, the annualised increase will amount to just under 4 per cent, putting it behind the 4.1 per cent pay rise industrial workers got in 2007.