Jubilee bonus payments to long-term employees of Volkswagen are among the many benefits that the company’s bosses want to reduce as part of major cuts in the German car manufacturer, a representative of VW confirmed for the dpa agency.
VW has threatened to close factories in Germany, while labor leaders have warned of mass layoffs of tens of thousands of workers in the country as the automaker struggles with falling profits and stiff competition.
VW executives and union leaders are currently negotiating a collective agreement for the company’s workers in Germany. According to the union, VW demanded a 10 percent wage cut in the negotiations.
The administration claims that the competitiveness of car manufacturers is threatened due to high costs in German factories.
According to the VW works council, thousands of VW workers will soon receive jubilee bonuses, which management now wants to cut.
According to the current collective agreement, workers are paid one-time benefits in the amount of 1.45 monthly wages after 25 years of service, and 2.90 monthly wages for 35 years of service.
Sources close to the works council said nearly 6,000 VW employees are approaching relevant anniversaries from March 2024. Some of them have reached the mark and received payouts.
VW employs around 120,000 people in Germany, around half of whom work at the car brand’s headquarters and main plants in Wolfsburg.
The VW brand operates a total of 10 factories throughout Germany.
Source: Seebiz.eu / dpa
Photo: Arhiva Autoblog.rs / Volkswagen
Source: autoblog.rs
