Volkswagen : 2018 pay negotiations at Volkswagen continued

The negotiating committees of Volkswagen AG and the IG Metall trade union have today continued their pay negotiations in Hanover. Martin Rosik, the leader of the Volkswagen committee and Head of Human Resources of the Volkswagen brand, said after the meeting: 'At today's meeting, we offered to increase pay by two percent for 12 months from May 2018. In addition, we proposed a one-off payment of €200 for the period from February to April.'

Rosik emphasized: 'We clearly stated to IG Metall that we would expect a contribution to competitiveness and safeguarding the future in return for this offer. Volkswagen faces tremendous challenges and must restore its competitiveness compared with companies in the metal and electrical industry. This is why we want to talk about appropriate solutions with IG Metall- also on the basis of our joint plan for the future 'Gute Arbeit' (good work).'

As an example of enhanced competitiveness, Rosik mentioned improvements in working time flexibility. For example, Volkswagen, similarly to the approach of the metal and electrical industry, wanted to agree on a quota for individual increases in weekly working time up to 40 hours by agreement with the employees concerned if the need arose.

As regards the topic of safeguarding the future, Rosik mentioned the realignment of vocational training: 'Vocational training is and will remain a key area for Volkswagen. Over the past few years, we have continuously focused on future-oriented topics. Digitalization and e-mobility are making it more essential than ever before to continue this approach and to significantly increase the share of future-oriented vocations. In view of the rapid pace of change, we will review this approach regularly, if possible every year. It is in the interests of both sides to ensure vocational training which is viable for the future. We want to discuss this topic with the employee representatives.'

Rosik also emphasized: 'We want to safeguard employment at Volkswagen in the future. This will only be possible if we rapidly establish competitiveness and keep costs under control. Only then will we be able to invest in the future.' With its 'Transform 2025+' strategy, Volkswagen is realigning itself for the mobility of the future. Improved competitiveness will be an essential prerequisite for the success of this strategy.

The collective agreement of Volkswagen Aktiengesellschaft applies to about 120,000 employees at the Wolfsburg, Brunswick, Hanover, Salzgitter, Emden and Kassel plants as well as Volkswagen Financial Services AG. The current pay agreements expire at the end of January.

Negotiations are due to continue on January 30, 2018.