Volkswagen and union agree 8.5% pay increase for workers

Volkswagen and union agree 8.5% pay increase for workers
Photo: Carlos Aranda - Unsplash

A deal has been reached between the car manufacturer Volkswagen and Germany’s biggest trade union, IG Metall, over an 8.5% increase in pay for workers. This payment will be achieved over two steps during the next 24 months, and will be accompanied by a one-off payment of 3,000 EUR. 

The agreement between the union and the manufacturer came following long negotiations and is based on the pilot agreement reached in Baden-Württemberg for the metal and electrical industry. It is expected that further details about the agreement will be announced shortly. 

The union had demanded a package for their 125,000 workers which included  an extension of the collective agreement on partial retirement, more days off for members of the union and the assumption of the semester fees for dual students at the company. 

The payrise comes as Germany is facing the economic challenges common across Europe. The German economy is currently facing an inflation rate of 10.4%, with record high fuel prices being among numerous causes for a cost of living squeeze. 

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