By Adria Calatayud
Volkswagen said it is proposing to cut workers' pay by 10% as part of a package of measures it considers necessary to remain competitive and make future investments, amid a crisis in the automotive industry.
The German auto giant said Wednesday that it also aims to restructure the bonus system for some employees, scrap top-up payments and implement a standard collective bargaining agreement with uniform working conditions.
The company said it is unable to meet a demand by German union IG Metall for a 7% pay rise due to a crisis in the auto industry.
The measures were proposed to employee representatives at a meeting in Wolfsburg, Germany, that took place Wednesday shortly after Volkswagen reported a drop in third-quarter earnings.
Daniela Cavallo, head of the company's works council, cautioned against interpreting Volkswagen's proposals as an initial rapprochement.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
10-30-24 1408ET