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Volkswagen Settles Union Negotiations

Volkswagen announced that it has successfully concluded the follow-on negotiations to the 2009 collective bargaining agreement, with its IG Metall workers union.

The terms set in 2009 included the remuneration's correlation with work performance and the employment of apprentices based on their performance during their training period. In return, both parties had agreed to hold negotiations related to job security. It has also been agreed to the extension of undertaking on safeguarding jobs until the end of 2014.

"Only successful companies can safeguard and create jobs in the long term. Competitiveness is the prerequisite for secure jobs. We have therefore made substantial progress in further developing our pay scale system by strengthening performance orientation," He added that joint efforts to increase productivity would bring an additional boost to Volkswagen’s competitiveness. "During their annual planning process, the management and employee representatives at each location will consult on how to meet productivity targets. Joint working groups will define the steps for implementing these measures," said Dr. Horst Neumann, member of the Board of Management of Volkswagen Aktiengesellschaft with responsibility for Human Resources.

"The viability contract between the company and IG Metall concluded in 2006 has proved its worth," Dr. Neumann added. "The return to normal working time after the four-day week, the undertaking to safeguard jobs initially until 2011 and the associated agreements on concrete measures concerning the efficient utilization of capacity at our plants have contributed significantly to Volkswagen’s present strength. This package of agreements systematically continues along the same path,"

This collective bargaining agreement affects 100,000 German Volkswagen AG employees. It also ensures that an annual 1,400 German apprenticeships are safeguarded at least until 2014.
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About the author: Andrei Tutu
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