Volkswagen the car manufacturer is considering a deal with the labor union IG Metal for wage raise of workers at German factories. According to Reuters more than 100 000 workers are going to be covered by the deal just as the automobile maker is struggling with sales and profits.
Volkswagen has been in talks with workers to reach a consensus on a moderate pay increase as the company isnt that strong financially and forecast dont prove to be positive at the moment.
The company took a loss in operating profit of nearly $3 billion by the first quarter of this year. Share price plunged around 8%. Despite dips of the car-maker, labor union is confident that VW could afford to give its employees a better pay rises. “We will reach a deal” was a statement of IG Metal spokesman showing confidence of a upcoming labor settlement.
Earlier this month the Labor union secured a deal for a inflation beating rate for 3.7 million engineering and metal workers.
The two parts of the discussion are due to hold a news conference today.
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