Volkswagen (VOWG_p.DE) will grant workers at its German factories a 4.3 percent pay increase despite difficulties in core western European markets amid the euro zone debt crisis.
The 97,000 workers at VW’s six western German plants and 5,000 employees at the financial services division will receive the additional pay over 13 months, starting June 1, Europe’s largest carmaker said on Thursday. Under the new contract, as many as 3,000 temporary workers will be hired permanently.
«This is a very good and acceptable compromise,» Hartmut Meine, chief negotiator for the IG Metall union, said at a press conference in Hanover, Germany. «We got a bit more than the overall industry.»
Earlier this month Germany’s largest labor union agreed with employers to increase wages across the country’s metal and engineering industry by 4.3 percent. The increase will benefit 3.6 million workers at companies including Daimler (DAIGn.DE) and BMW (BMWG.DE).