Volkswagen’s New Deal: Managers Take a Hit
Bonus Cuts Ahead for Volkswagen Managers
In a bid to revamp its German operations, Volkswagen has struck a deal with unions that will see a significant reduction in managers’ bonuses. According to the Sueddeutsche Zeitung newspaper, this move will result in a 10% pay cut for the next two years.
The Numbers Behind the Cuts
The reduction in bonuses will affect May payments, leading to a 10% pay decrease in 2025 and 2026 for approximately 4,000 managers. Furthermore, their salaries will drop by 8% in 2027, 6% in 2028, and 5% in 2029.
A Spokesperson Remains Tight-Lipped
When approached for comment, a Volkswagen spokesperson declined to provide any information on the report. Meanwhile, representatives from the IG Metall union and the company’s employee works council were unavailable for immediate comment.
A Broader Context: Volkswagen’s Sweeping Changes
This development is part of a larger overhaul of Volkswagen’s German operations, announced on Friday. The company plans to cut over 35,000 jobs and significantly reduce production capacity in the coming years. This agreement aims to prevent mass strikes and address the broader slowdown in German industry.
A Shift in Strategy
By making these changes, Volkswagen is adapting to the shifting landscape of the automotive industry. As Europe’s top carmaker, the company is taking proactive steps to ensure its future success. While the road ahead may be uncertain, one thing is clear: Volkswagen is committed to transforming its operations to stay ahead of the curve.
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