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1 August, 2001The German metalworkers' union says that VW's new jobs' proposition undercuts present wages and working conditions.
GERMANY: Volkswagen, the German-based transnational car producer, is facing major conflict with the IMF-affiliated German metalworkers' union IG Metall.
Contrary to other auto producers in Germany -- like DaimlerChrysler, BMW, Ford and Opel -- which are covered by regional agreements for the metal industry, VW has an enterprise collective agreement for Volkswagen AG (excluding Audi and VW Saxonia). The conflict with VW started when the company publicly announced a proposal which became known as the "5,000 times 5,000", meaning VW wanted to create 5,000 new jobs at an average monthly pay rate of 5,000 German marks (US$2,255). As part of the project, the company's personnel director, Peter Hartz, is pushing for weekly working time of up to 48 hours, with no additional pay, for these jobs, but IG Metall president, Klaus Zwickel, wants no more than 40 hours per week, plus training during working time.
Although the media praised the so-called "magic" formula, while not taking into account what VW workers currently earn, IG Metall rejected the carmaker's proposal, at grassroots level to start with, as such an offer would undercut existing wages and working conditions. IG Metall has informed the public that "5,000 times 5,000" is anything but a progressive offer, that it is even a provocation in view of what the union has achieved in many years of tough bargaining with VW.
After a halt in negotiations, the bargaining may start again after mid-August if, as IG Metall chief negotiator Hartmut Meine states, "the project can be realised with reasonable conditions."
Contrary to other auto producers in Germany -- like DaimlerChrysler, BMW, Ford and Opel -- which are covered by regional agreements for the metal industry, VW has an enterprise collective agreement for Volkswagen AG (excluding Audi and VW Saxonia). The conflict with VW started when the company publicly announced a proposal which became known as the "5,000 times 5,000", meaning VW wanted to create 5,000 new jobs at an average monthly pay rate of 5,000 German marks (US$2,255). As part of the project, the company's personnel director, Peter Hartz, is pushing for weekly working time of up to 48 hours, with no additional pay, for these jobs, but IG Metall president, Klaus Zwickel, wants no more than 40 hours per week, plus training during working time.
Although the media praised the so-called "magic" formula, while not taking into account what VW workers currently earn, IG Metall rejected the carmaker's proposal, at grassroots level to start with, as such an offer would undercut existing wages and working conditions. IG Metall has informed the public that "5,000 times 5,000" is anything but a progressive offer, that it is even a provocation in view of what the union has achieved in many years of tough bargaining with VW.
After a halt in negotiations, the bargaining may start again after mid-August if, as IG Metall chief negotiator Hartmut Meine states, "the project can be realised with reasonable conditions."