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Volkswagen: Unions Offer to Waive Salary Increases

Background

Volkswagen is facing significant financial challenges due to the ongoing COVID-19 pandemic and the global chip shortage. The company has announced plans to cut production and lay off thousands of employees. In response, the German trade unions IG Metall and Volkswagen's works council have offered to waive salary increases for the next two years.

Union Proposal

The unions' proposal is part of a broader effort to save jobs and protect the company's future. The offer includes a freeze on base salaries, performance-related pay, and bonuses. The unions have also agreed to reduce working hours by 10%, which will lead to a corresponding reduction in pay.

Company Response

Volkswagen has welcomed the unions' offer as a sign of solidarity and a willingness to share the burden during this difficult time. The company has stated that it will consider the proposal carefully and make a decision in the coming weeks.

Impact on Employees

The unions' proposal will have a significant impact on Volkswagen employees. The average employee will lose approximately €2,000 in annual income over the next two years. However, the unions believe that the sacrifice is necessary to protect jobs and ensure the long-term viability of the company.

Outlook

The Volkswagen unions' offer to waive salary increases is a significant development in the ongoing negotiations between the company and its employees. The proposal is a sign of the unions' commitment to the company and their willingness to make sacrifices to protect jobs. The company is expected to make a decision on the proposal in the coming weeks.