Thursday, February 17, 2022


VW Employees Getting Another Coronavirus Bonus As One-Off Payment

Jacob Oliva - Yesterday 
© Motor1.com

This is the second premium that VW employees got amid the pandemic.

The coronavirus pandemic has been affecting various industries since two years ago. The automotive industry is one of those, and companies have been trying hard to compensate their workers who continue to soldier on despite the risks.

One of those companies is Volkswagen AG. The automaker has announced that its employees working at its German locations will be given another round of "coronavirus premium" in recognition of their hard work in recent months.

The bonus amounts to 500 euros or around $568 with the current exchange rates, a retrospective payment for the period from July 2021 to February 2022.

The payout will happen at the end of February 2022 with the employees' monthly salary. It will be paid gross for net, which means it won't be taxed and the employees will receive the full amount.

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"In recent months, the pandemic greatly tested our employees – whether they were working at our locations or remotely. The flexibility and tireless dedication they have shown is a remarkable performance that we would like to recognize. That is the reason for the new coronavirus premium," Chief Human Resources Officer Gunnar Kilian said in a statement.

Apprentices, dual students, and doctoral students will also receive a bonus in recognition of the additional strain caused by the pandemic. They will receive up to 300 euros ($341).

Volkswagen's first round of coronavirus bonuses was paid out in June 2021 for the period from March 2020 to June 2021. That money amounted to 1,000 euros ($1,136).

The German government’s coronavirus economic aid package made these bonuses possible. The package allows employers to pay their employees up to 1,500 euros ($1,705) in premium, free from tax and social security contributions.

This isn't the first time we've heard of a coronavirus premium from automakers. In December 2020, Daimler rolled out a $1,200 "corona bonus" to its employees for similar reasons.

Source: Volkswagen



Volkswagen works council sees Q1 decision on new Wolfsburg plant

BERLIN (Reuters) - The works council of Volkswagen said on Wednesday it hopes for a final decision on exactly where the German company will build a new electric vehicle plant in the first quarter, adding it wants it close to its existing Wolfsburg factory.

"We are fighting for Trinity production right here in Wolfsburg, which means either on the factory site or in the direct vicinity of the main plant," works council head Daniela Cavallo said in a statement.

Volkswagen said last year it plans to build a new state-of-the-art car factory close to its headquarters in Wolfsburg, Germany, hoping to raise its game as the opening of Tesla's gigafactory near Berlin draws closer.

The plant is part of the group's Trinity project under which the carmaker wants to build a flagship electric sedan in Wolfsburg from 2026.

However, Volkswagen Chief Executive Herbert Diess has angered labour representatives by arguing that VW's main site - which does not currently produce any electric models - was way behind Tesla in terms of efficiency and speed.

Cavallo said the new plant should be closely connected to the existing factory to maximise synergies. The works council added it expected a decision about the precise location of the new plant in the first quarter.

The works council said Volkswagen produced 330,000 fewer vehicles than originally planned at the Wolfsburg plant last year due to a lack of semiconductors, with just under 400,000 vehicles rolling off the production line.

Volkswagen said in early February that night shifts at Wolfsburg would be cut on some production lines because of the lack of chips.

"The coming months will be hard, but we will carry on being the leading plant for the whole Volkswagen Group here in Wolfsburg. This is where we set the direction for the company," Cavallo said.

Cavallo reiterated a demand for a wage bonus for employees despite the tough earnings situation.

(Reporting by Jan Schwartz and Victoria Waldersee, writing by Emma Thomasson; Editing by Madeline Chambers)

works council can be elected in Germany in operations normally having at least five employees. Whether a works council should be elected in an operation is decided exclusively by the employees. Preventing a works council election in Germany is punishable under criminal law. The size of the works council to be elected depends on the number of employees in the company and can consist of up to 35 members.
www.squirepattonboggs.com/~/media/files/insights/events/2011/10/works-council…

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