Anniversary bonus payments to former Volkswagen employees are among the many wage benefits that company bosses want to reduce as part of deep cuts at the German carmaker, a VW spokeswoman confirmed to dpa on Saturday.
VW has threatened to close factories in Germany, while union leaders have warned of mass layoffs of tens of thousands of workers in the country as the carmaker faces falling profits and fierce competition.
VW executives and union leaders are currently negotiating a collective bargaining agreement for the company’s employees in Germany. According to the union, VW demanded an overall pay cut of 10% during the talks.
Management states that the carmaker’s competitive position is at risk due to the high costs in its German factories.
According to the VW works council, thousands of VW employees will soon receive anniversary bonuses, which management now wants to cut back.
According to the current collective labor agreement, employees receive one-off bonuses of 1.45 times their monthly salary after 25 years of service and 2.90 times the monthly salary after 35 years of service.
Sources close to the works council said almost 6,000 employees at VW were approaching the relevant anniversaries from March 2024. Some of them have already reached the border and received the payments.
VW employs around 120,000 people in Germany, about half of whom work at the car brand’s headquarters and main factories in Wolfsburg.
The VW brand operates a total of 10 factories throughout Germany.
