Employees of Volkswagen have seen their wages increased after a long battle. Their annual pay will increase by 4.3 per cent despite a huge debt crisis in the European car market.

Volkswagen 97,000 workers to receive benefit
Volkswagen’s 97,000 workers across the companies six factories on top 5,000 extra workers placed in the company’s financial department will receive the extra pay over 13 months. The repayment schedule is set to begin on June 1st.

Good news for temps
Volkswagen has also delivered more good news to employees by confirming that 3,000 temporary workers will be taken on as permanent workers.

Germany’s metal workers
Germany’s workers associated with the company’s largest labour union saw their wages increased by 4.3 per cent. In total 3.6 million workers will receive the benefit of increased wages.

An IG Metall Union spokesman welcomed the news saying “This is a very good and acceptable compromise. We got a bit more than the overall industry”

Volkswagen are the world’s second largest car makers and Europe’s biggest. They managed to post a 10.2 per cent profit in the first quarter of this year reaching an operating profit of 3.2 billion Euros. This tremendous achievement comes despite a great decline in the European car market, amid the Euro Zone debt crisis.

However deliveries fell in Europe overall 5.9 per cent during the first four months of the year. Just 661,400 cars were delivered. Considering that the employees of Volkswagen did extremely well in order to achieve such a tremendous pay rise.
It has been suggested that the pay rise given will not help Volkswagen battle within the Asian markets where the company have serious room for improvement. A better balance between wages and the cost of labour must be struck in order for the company to prosper in these particular regions according to some experts.

Volkswagen has agreed a deal with IG Metal where there will be 10 per cent of extra apprenticeships along with an extra 200 Euro bonus. Temps can be hired from a period ranging from 18 months to 36 months.

Volkswagen had previously increased wages in 2011 by 3.2 per cent. This agreement was in place for 16 month and also included a one off bonus equivalent to 1 per cent of their base salary.