VW to Offer Lower Pay Rise Than German Industry Agreement image

Volkswagen plans to offer pay rise for its employees lower than 4.3%, the wage increase the German manufacturers have agreed to recently.

“VW will give the IG Metall union a pay proposal Wednesday, and it’s pointing out that western Europe’s economic situation ‘hasn’t changed’ for the better,” said Martin Rosik, the carmaker’s human resources chief.

Today, May 30thm reports from the German auto industry confirmed that more Daimler employees are due to be laid off, ThyssenKrupp AG and Volkswagen AG being among the auto manufacturers considering taking the same action. 36,000 workers represented by the Metall Labor union, are unhappy with the current terms and payment structure.

The IG Metall Labor Union demands a pay increase of 6.5%, apprenticeships to be hired full time and more control over the hiring of temporary workers. In April 2012, a 3% pay rise proposal was rejected by the Union. The German economy is the strongest compared to other European countries, but the continuous disagreement between the Union and the German car makers will come as a blow for the auto industry in the Country.