- Volkswagen AG VWAGY has reached a collective bargaining agreement with Germany’s largest trade union IG Metall, for its factories in West Germany.
- According to the deal, some 125,000 workers are expected to receive an 8.5% pay rise.
- The parties, Reuters reported reached an agreement after 11 hours of nightly negotiations.
- The two-year deal will offer workers a 5.2% wage increase beginning in June 2023 and an additional 3.3% beginning in May 2024, as well as a $3,093 payout to offset inflation.
- also read: Volkswagen cuts China sales forecast by 14%
- However, the deal is below inflation, taking into account inflation of 11.6% in October in Germany.
- IG Metall demanded an 8 percent wage increase over 12 months for workers at six German plants owned by Volkswagen and its subsidiaries.
- See also: Volkswagen Holding talks to investors ahead of PowerCo’s IPO
- Price promotion: VWAGY shares closed up 0.86% at $18.86 on Tuesday.
- Photo via company
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