Germany: Volkswagen workers secure a 4.8% wage rise as well as a new agreement on early retirement

In spite of the emissions scandal and massive financial penalties looming over the German automaker, the metals union IG Metall succeeded in securing a new ‘in house Volkswagen agreement’. In Hanover, during the night of 19 May IG Metall concluded the agreement that runs for twenty months and expires on 31 January 2018. It largely takes up the provisions from the pilot collective agreement, which the North Rhine Westphalia Länder (NRW) concluded two days before. VW’s 120,000 employees in Germany will receive a two stage wage rise comprising an initial 2.8% from 01 September 2016, followed by another 2% paid from 01 august 2017. In addition in August, workers will receive a €200 lump sum, to add to their company supplementary pensions. An agreement over early retirement, which was a primary source of disagreement, has also been extended to 2022.