VW Group Pays Out Performance Bonuses

Unions at Volkswagen Group win agreements on a performance-related bonus of about €5,000 ($5,675) per worker.

The agreement in response to business successes during 2019 will see all its employees receive the bonus announced by CEO Herbert Diess and the chairman of the general works council, Bernd Osterloh. The payout is based on the 2-year calculation period laid down in collective bargaining agreements.

Of the latest bonus, employees covered by collective bargaining agreements already received €1,690.50 ($1,919.05) gross with their salary for November 2019. This means employees are still to receive an amount of €3,259.50 ($3,700.17) gross. This will be paid together with their salary for May.

“The employees of Volkswagen again demonstrated a strong team performance in 2019,” Diess says. “They have made a key contribution to the business success of Volkswagen. With the bonus under the collective bargaining agreement, we wish to thank them for their commitment and to allow each individual employee to participate in the success of the company.”

However, the automaker’s human resources board member, Gunnar Kilian, warns this year may be more challenging for VW Group.

“This bonus reflects the successful year of 2019. For 2020, it is clear that expectations may be more limited,” he says. “The transformation will call for dedication, flexibility and efficiency.”