Volkswagen Makes Deal with IG Metall Union

VolkswagenVolkswagenGermany, 1938 > present67 models
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has reached an agreement with the IG Metall union in Germany. IG Metall has been staging warning strikes against PorschePorscheGermany, 1931 > present39 models
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, BMWBMWGermany, 1918 > present77 models
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, OpelOpelGermany, 1863 > present66 models
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and DaimlerDaimlerGermany, 1889 > present12 models
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for wage increases. 

The deal that Volkswagen and IG Metall struck gives the union a 4.3% pay increase beginning June 1, 2012. Volkswagen will also add 175 apprenticeships annually for a total of 1,600 apprentices a year. The apprentices will be paid a one-off stipend of €200. Volkswagen will also make 3,000 temporary employees into full time employees in mid-2013. The new contract lasts 13 months. 

"Our employees will receive a reasonable pay increase. We have gone to the limits allowed by tougher international competition in the automotive industry. To further improve our competitive position, we continue to invest in training and are creating 175 additional apprenticeships," said Dr. Horst Neumann, Member of the Volkswagen Board. 

The union had been requesting a 6.5% pay increase. The automakers had been offering a 3% pay increase. 

Volkswagen is the first German automaker to come to terms with the union. The deal signals that the rest of the automakers will likely have a deal soon. 

German Auto Industry Possibly Heading Towards Strikes