Days off only – austerity measures: VW cuts extra money for employees

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Due to the austerity measures, Volkswagen is removing the option for employees to choose between days off and a wage supplement. A spokeswoman confirmed on Monday that it will no longer be possible to have the extra reward paid out in this year or the next two years. Instead, all CAO employees were given six extra days off.

This has been agreed with IG Metall as part of the efficiency improvement program for the core VW brand announced last year. Business Insider had previously reported this.

A new rule applies for the next three yearsAh
According to the works council, about half of VW employees have already decided to take vacation days and forego the extra pay. This is now mandatory for three years. The 2022 collective labor agreement created the opportunity for all collective labor agreement employees at VW to choose flexibly between bonuses and days off. Previously, this only applied to certain employees.

Works Council: “This is a step backwards”
Works council boss Daniela Cavallo regretted the restriction. “This is a step backwards,” she said in a special edition of the works council magazine “Mitdeterminen”. “But we think this is a viable option.” This could prevent wage cuts.

In December, VW reached agreement with the works council on the main points of an efficiency improvement program. Administrative personnel costs must be reduced by 20 percent. There should be no redundancies for operational reasons.

Source: Krone

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