Volkswagen To Pay Its Employees A 1250 Euros Bonus

Despite facing an ongoing crisis, German carmaker Volkswagen announced it had approved a one-time payment of 1,250 euros ($1,435) for workers covered by the collective agreement.

The board approved the payout from the profit-sharing program even though the company and employee representatives originally agreed to waive it. A one-time payment will be made in May.

“In a difficult period of restructuring marked by great uncertainty, our colleagues are working on the successful future of Volkswagen with great expertise, passion, and team spirit,” said Volkswagen Brand Chief Executive Officer Thomas Schaefer.

VW Group announced last week that its profit after tax fell by around 44% to 6.9 billion euros.

“The enormous commitment of the entire workforce has contributed to the strong result of the Volkswagen brand, which in turn affects the result of our group,” said President of the Group Works Council Daniela Cavallo. In her message to the employees, she emphasized that it is logical and fair that all groups of employees now benefit.

Sources close to the Group’s works council noted that the two sides initially differed over the amount of the bonus. While the employee representatives aimed for 1,500 euros, the management originally wanted to pay a maximum of 500 euros. After several rounds of negotiations, it was agreed that it would be 1250 euros.

• Also See: Volkswagen’s Profit Falls By 53% With Porsche As The Major Culprit