VW factory employees will receive bonuses after all

Despite earlier fears, Volkswagen pays more than $4,000 to each factory worker.

Earlier this spring, doubts were voiced whether Volkswagen AG would pay bonuses to its workers this year. Those fears were premature. The automaker announced it will pay the employees covered by a collective bargaining agreement a profit share of €3,950 or $4,470 for the fiscal year 2015.

"Despite the difficult situation", said Dr. Karlheinz Blessing of VW's human resources department, "Volkswagen's employees produced a very good team performance and their strong commitment needs to be acknowledged." Reflecting Volkswagen's challenges, the bonuses are down slightly from last year as earlier the employees received $6,670. Of the $4,470 bonuses per worker, VW has already paid an advance portion of $1,750 in November 2015.

Earlier, the German state of Lower Saxony called for Volkswagen's executive bonuses to be reduced or cut, Reuters reported in April.

Press release:

Wolfsburg, 13 May 2016

Volkswagen to pay profit share of €3,950 to employees covered by collective bargaining agreement

• Board Member for HR, Dr. Blessing, praises joint efforts in difficult year
• Works Council Chairman Osterloh: team performance pays off

Volkswagen AG employees covered by the collective bargaining agreement are to receive a profit share of €3,950 gross for fiscal year 2015. This figure was agreed during negotiations between the Works Council chairpersons from the Brunswick, Emden, Hanover, Kassel, Salzgitter and Wolfsburg plants, and the Volkswagen Board of Management. The profit share is based on an adjustment of the collective bargaining agreement with IG Metall. The profit share will in future be calculated based on a two-year period.

Volkswagen Board Member for Human Resources, Dr. Karlheinz Blessing, said: "Volkswagen employees produced a very good team performance last year despite the difficult situation. Their strong commitment deserves to be acknowledged and is now being recognized in the form of this profit share, which is also a clear signal that the Board of Management and the Works Council will tackle the difficult challenges together."

The General Works Council Chairman, Bernd Osterloh, commented: "Employees at our plants worked under high pressure last year. The situation was characterized by special shifts and overtime. Our employees demonstrated their firm commitment to the company, even in difficult times. That is why the Board of Management and the Works Council are convinced that they deserve this profit share. As expected, Matthias Müller proved to be a fair negotiating partner."

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