5 June, 2013IG Metall negotiated a deal with Volkswagen over increase of wages by 5.7 per cent in the next 20 months.
According to the agreement reached on 28 May during the second round of negotiations between IndustriALL German affiliate IG Metall and Volkswagen, workers will be able to get their share from the growing profits of the company. The agreement is valid till 28 February 2015.
Approximately 102,000 workers employed at six plants of Volkswagen in western Germany and the financial services unit will get their hike in two stages: from 1 September 2013, there is wage increase of 3.4 per cent for ten months. As of 1 July 2014 workers will have their wages raised by further 2.2 per cent during next eight months. The wages remain the same from July to August 2013.
As part of the compensation scheme the IG Metall enforced an additional bonus: workers will receive a pension credit worth 300 euros. Those who prefer to get cash instead will receive a lump sum of 275 euros gross at the end of August 2013. The agreement improves pension coverage for trainees and students, who will also receive a pension credit of 95 Euros however without an option of cash withdrawal.
The achievement is in line with the earlier reported tariff agreement reached by IG Metall in mid-May.