Industry News
VW reaches deal with IG Metall on working hours and jobs
3rd October 2006
The German IG Metall trade union reached a deal on 29 September with Volkswagen, after what had been described as difficult negotiations over working hours, which VW had wanted to extend to 35 hours without extra pay. The arrangement will see production assured in seven German VW manufacturing plants until 2011, in return for which IG Metall workers have agreed flexible hours at basic pay rates ranging between 25 and 33 hours. In January 2007 they will receive a one-off bonus of €1,000 (£680), and a year later their income will equal the average in the regional metals and electronics sectors.
VW has committed to building the next Golf and one other volume model at Wolsfburg, and maintain the plant’s capacity of 460,000 units a year. Its Hanover operation will be developed as a ‘centre of excellence, assuring jobs for 700 qualified workers. The Kassel VW plant will become a lead supply source for electrical components. Capacity is to be increased at Emden to accommodate a further model besides the current Passat and CC Coupé. The Braunschweig plant is to be a supply centre for steering and suspension systems. Salzgitter will increase engines output. The number of apprentice training places will be maintained at 1,250 per annum on a contractual basis.
VW is to pay workers about €6,300 a year towards their pension contributions in light of their flexible working commitment, and bonuses linked to the VW brand business’ profits.
IG Metall’s leader in the negotiations, Hartmut Meine, described the agreement as “a compromise with strengths and weaknesses”.
The BBC reported VW's HR director Horst Neumann describing the agreement as a big step forward in the restructuring of Volkswagen.
(www.igmetall.de)
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