VW plans to freeze salaries until 2030, works council says

By Reuters News

Oct 19 (Reuters) - Volkswagen plans to freeze salaries for its 660,000 staff worldwide until 2030, the group's works council said on Monday, confirming an earlier report by Sueddeutsche Zeitung.

  • The Global Works Council said it had received internal information about the executive board's plans

  • Volkswagen declined to comment on "speculation". A spokesperson added that a new round of talks later this week would be the forum for any proposals on labour costs

  • The works council called the management's approach "absurd" and said it expected strong resistance to what is described as the plan's "rather unrealistic" implementation

  • "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

  • Relations between Volkswagen and its labour representatives have deteriorated in recent months, as CEO Oliver Blume pushes ahead with the most radical restructuring in the German auto group's history

  • The Sueddeutsche Zeitung reported the news earlier on Monday, citing internal documents

  • The absence of pay rises could mean a loss of income of around 10% for those affected, due to inflation, the paper said

  • The paper report said the new global management guidelines, effective from the fourth quarter, also include cuts to variable pay, special payments, benefits, and jobs.

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