Volkswagen plans global salary freeze through 2030 - report
Ivan Kyryk
Volkswagen (VWAGY) plans to freeze salaries for its 660,000 employees worldwide until 2030, a German newspaper reported Monday, citing internal company documents. The automaker’s global works council confirmed the plans, while Volkswagen declined to comment on what it called “speculation.”
The proposed measures also include cuts to variable compensation, special payments, and other benefits. The new guidelines for international labor negotiations took effect in early October, according to IG Metall.
“At Volkswagen, pay development is decided at the negotiating table, not by decree from the executive boardroom,” a spokesperson for Germany’s trade union IG Metall said.
Volkswagen said a new round of talks later this week would be the appropriate forum for proposals on labor costs. The plan comes as CEO Oliver Blume pursues a broad restructuring aimed at reducing costs, according to the report.
More on Volkswagen AG
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