BERLIN (Reuters) – A cut in manager bonuses at Volkswagen will lead to a 10% pay cut over the next two years, the Sueddeutsche Zeitung newspaper reported on Sunday, after the German carmaker struck a deal with unions to cut jobs and return production to be screwed.
The cut will apply to May bonus payments, leading to a 10% pay cut in 2025 and 2026 for 4,000 managers, the newspaper said. Over the next three years, their wages will fall by 8%, 6% and 5%, it added.
A Volkswagen spokesperson declined to comment on the report. Representatives of the IG Metall union and the company’s works council were not immediately available for comment.
Volkswagen, Europe’s largest carmaker, announced sweeping changes to its German operations on Friday, including more than 35,000 future job cuts and sharp capacity cuts in the deal reached with unions after days of grueling talks.
The deal was aimed at preventing mass strikes at the company, whose problems have highlighted a broader slowdown in German industry.
(Reporting by Rachel More; Editing by Helen Popper)
