VW German Employees Want 6.5% Pay Rise image

VW’s workers from its German plants want a 6.5% pay rise and demand a share of the automaker’s record sales.

The IG Metall union from Germany requested a pay increase between 5% and 6.5% for almost 100,000 workers at the company’s six plants located in the western part of the country. In 2012 VW employees won a 4.3% pay rise, part of a 13-month salary contract. Bernd Osterloh, head of VW’s works council and member of IG Metall’s executive board said that the workers’ demand is broadly in line with the labor union’s claims for almost 3.7 million metal and engineering employees in Germany.

On January 14th, VW reported record sales for 2012, up 11% to 9.07 million units, boosting annual deliveries with 44% since 2009, due to increased demand in the US and China. Chief Executive Officer Martin Winterkorn said that 2012 was ‘the best sales year ever’ and a big step in the automaker’s 2018 strategy.

Analysts predict that in 2013 VW’s sales will see an increase of only 0.7% to 9.15 million, the smallest increase since 2009. VW’s record sales reported in 2012 were accomplished thanks to Audi’s contribution with 1.46 million vehicles, up 12%. Porsche’s sales increased 19% to 141,075 vehicles, also a record for the brand.