According to an insider, the 125,000 Volkswagen employees in western Germany receive significantly higher wages.
The IG Metall trade union and the Wolfsburg carmaker agreed early on Wednesday morning on a new company tariff that would provide for two-step increases in income of 8.5 percent and a one-off payment of EUR 3,000 net over a period of two years, said a person with knowledge of the agreement.
The agreement reached after long negotiations is based on the pilot agreement reached in Baden-Württemberg for the metal and electrical industry.
IG Metall invited to a press conference in Hanover at 9:00 a.m., at which the details of the deal were to be presented.
"After more than twelve hours of negotiations, IG Metall and Volkswagen were able to reach a collective agreement in the third round in Hanover," the invitation said.
For the employees at the six West German locations of Volkswagen AG and individual Volkswagen subsidiaries, this means more money, more days off and an extension of partial retirement.
At Wolfsburg, the union traditionally negotiates an in-house wage agreement for the employees in the West German plants, the group's own financial services provider Financial Services and some subsidiaries.