Audi favors one-off staff payments over permanent compensation surge

By Ayushi Garg  | Date: 2022-10-31

Audi favors one-off staff payments over permanent compensation surge

The German union IG Metall is demanding an 8% pay increase for the 3.8 million workers in the metal & electrical sector.

The employers offered a payout of approximately USD 3,000 spread over 30 months, but the union rejected it.

German automaker Audi AGs human resources department is reportedly in favor of granting employees one-time tax-free bonuses rather than permanent wage rises, as unions throughout Europes largest economy seek higher wages in light of growing inflation.

With consumer price inflation in Germany reaching 11.6% in October, workers' purchasing power has already been negatively impacted. However, due to the rising costs of raw materials and energy, employers do not perceive a lot of room for salary increases.

The countrys largest manufacturing sector, the metal & electrical industry, has been the target of strikes by the German union IG Metall, which began on Saturday night i.e., 29th October at some companies. The union is demanding an 8% pay increase for the 3.8 million workers employed in this sector.

Interestingly, as a temporary measure to help employees deal with inflation, the employers offered a payout of approximately USD 3,000 spread over 30 months, but the union rejected it.

However, according to Xavier Ros, director of human resources at Audi, such a payment might be a means to come to a compromise because, in the long run, raising wages significantly in response to growing consumer prices would be detrimental to the economy.

When talking about a short-term issue, Ros was reported saying that what they needed  to consider was the question of how sustainable such a substantial pay increase would be as the current economic situation is terrible, and thats why these conversations are more complicated than usual.

Although it is not a direct participant in the salary negotiations, the Volkswagen Group brand Audi accepts the conclusions in a collective wage agreement.

Source Credit:

https://www.933thedrive.com/2022/10/30/audi-supports-one-off-staff-payments-over-permanent-wage-hikes/#:~:text=Audi%20supports%20one-off%20staff%20payments%20over%20permanent%20wage,demand%20higher%20wages%20in%20light%20of%20rising%20inflation.

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Ayushi Garg     aeresearch.net

Ayushi Garg

Currently working as an associate content writer, Ayushi pens down insightful articles for several websites. She began her profession by taking classes in digital marketing to broaden her skills. Given her passion for writing, she took up several freelancing projects ...

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