Volkswagen Plans Worldwide Wage Freeze Through 2030
The company's executive board has reportedly directed human resources departments across its global operations to halt salary increases, based on information from the European and Global Works Council cited in union communications.
The instruction, which reportedly took effect in early October, replaces an earlier budgeting system that accounted for inflation adjustments and pay rises agreed through local negotiations.
Worker representatives anticipate opposition to the proposed measure, maintaining that compensation decisions should remain subject to negotiations between local employers and labor unions.
In response, IG Metall is demanding a five percent pay increase over a 12-month period.
The union represents workers at an automaker that employs more than 660,000 people globally, including approximately 275,000 in Germany.
Daniela Cavallo, president of Volkswagen's Works Council, asked the company's management on Sunday evening to clarify the proposed wage policy directly to employees.
According to the union, management had not yet issued an official response to the request.
Employee representatives have also warned that maintaining wages at current levels for several years could weaken workers' purchasing power as living costs rise.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
