Volkswagen And The Unions: That Was Easy

Bertel Schmitt
by Bertel Schmitt

No war of words, no strikes, no hard feelings: After only two rounds of negotiations, Volkswagen and the metalworkers union IG Metall had a deal late last night. There will be a 3.2 percent increase in base pay effective May 1, 2011, and each employee will also receive a one-time payment corresponding to one percent of his or her annual pay but no less than €500.

Originally, the Unions had demanded six percent. Volkswagen countered last week with 2.9 percent, and after not too much arm-wrestling, the deal was done. The union says the deal was a fair compromise. Volkswagen has the cash to pay more. They can’t make enough cars to keep up with the demand. The company is running extra shifts and needs cooperative workers. Volkswagen will announce its 2010 numbers on February 25.

Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Obbop Obbop on Feb 08, 2011

    Gung Ho. Work together Strive for some common good. Just don't ask me to chant company slogans in a group setting as I have seen on various documentaries such as done at Wal-Mart et al. Heck, I don't even babble an allegiance pledge to an emblem made of cloth likely manufactured in China. I felt like such a sap standing in front of a class of youth, jaw clenched shut, forced to be a part of the indoctrination process of those kids with the spawn of likely brainless tumor parents uncomprehending of any real/deep meaning within those memorized words. Tempted to just "cut to the chase" and inform the vile spawn it is their duty to OBEY!!!!!!! I applaud any firm where the disparate groups can reach a consensus and strive for good for all. Yes, every "ship" needs a captain but earned loyalty, common interests and willing followers can create an awesome machine of industry or war or pizza makers or burger outputters or achievers of whatever task the group tackles. But the insistence of demanding maximum rewards to flow in one direction (typically ever upwards) seems to be the rule of the day.

    • Mpresley Mpresley on Feb 08, 2011

      Huh...? Whatever he said, I agree, unless it costs money.

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