Volkswagen resolves wage dispute with labor union IG Metall
In the wage discussions at Volkswagen, it's about adjusting paychecks and ensuring job security. However, the automaker has turned down the union's salary increase requests. Rather than receiving more income, employees are expected to chip in.
Volkswagen has dismissed the IG Metall's compensation requests and is advocating for spending reductions. Lead negotiator Arne Meiswinkel stated following the commencement of talks, "Rather than an extra financial burden, we need relief. To accomplish this, contribution from employees will be necessary." Meiswinkel added, "Instead of an additional financial burden, we need financial relief."
The union calculates that this would essentially equate to a salary decrease. "That's how it should be understood," said IG Metall lead negotiator Thorsten Gröger after the conclusion of the three-hour talks. IG Metall is demanding a 7% pay hike at VW, as it is for the whole sector.
The discussions revolve around the wage agreement, wherein IG Metall is demanding, among other things, a 7% pay hike. Additionally, several other collective agreements are being renegotiated, including the agreement on job security that has been in place for three decades, which Volkswagen has ended.
IG Metall negotiator Gröger expressed disappointment that the company hasn't yet specified its objectives for terminating the agreements yet. "It wasn't specified, they remained general," said Gröger.
"Layoffs and mass firings remain a possibility." The two parties haven't yet scheduled a date for the next round of talks. The peace obligation in the wage round expires at the end of November, so strikes are possible from December 1st.
Volkswagen is currently focusing on reducing expenditures instead of increasing salaries in the Manufacture of motor vehicles. Meiswinkel suggested that financial relief can be achieved through employee contributions.
