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VW to Offer 4.2% Pay Rise

The German brand Volkswagen and IG Metall trade union reached an agreement today to provide a 4.2 percent increase in the pay of 95,000 VW AG employees from January 1, 2010. Furthermore, the company will offer two additional bonuses: 510 euros in mid-October and 200 euros at the end of February 2010.

"In difficult times we have reached an agreement that strengthens our competitiveness. Through the introduction of a performance-related remuneration component, we are progressing with the strategic further development of our remuneration systems and are taking an important step towards becoming the most attractive employer," chief negotiator for Volkswagen AG, Jochen Schumm, said.

"Our wage agreement is in line with the rise agreed for the metal and electrical industry. This was only achievable as part of a comprehensive package and because our demand for a performance-related remuneration component was met."

Additionally, Volkswagen revealed that the 1,250 new apprenticeships per year programme will be extended until the end of 2011 and will be then replaced by new performance-based arrangements.

"First-class training for young people is a prerequisite for the successful future of the company and society. That is one reason in particular why we still need partial retirement arrangements. Legislative measures are called for in this context."


Last but not least, the German carmaker will introduce in 2011 a new performance-oriented remuneration system for all employees covered by a collective wage agreement. The two sides have not concluded all terms of the agreement but a final decision is to be made by the end of September 2010.
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About the author: Bogdan Popa
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Bogdan keeps an eye on how technology is taking over the car world. His long-term goals are buying an 18-wheeler because he needs more space for his kid’s toys, and convincing Google and Apple that Android Auto and CarPlay deserve at least as much attention as their phones.
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