Home » VW: Severance payments of up to 454,700 and turbo bonus for managers

VW: Severance payments of up to 454,700 and turbo bonus for managers

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VW: Severance payments of up to 454,700 and turbo bonus for managers

picture alliance/dpa | Moritz Frankenberg

The cost pressure at the car manufacturer Volkswagen is causing the group to expand its job cuts.

Managers are therefore offered termination contracts with a special bonus of 50,000 euros. There are also even more options for partial retirement.

As Wirtschaftswoche reported, severance payments ranging from 17,700 euros to 404,700 euros will be paid – depending on the length of service and the classification of the collective agreement.

According to research by Business Insider, the car manufacturer Volkswagen is planning significant job cuts: According to this, the Wolfsburg-based group wants to offer its management termination contracts in sales, research and development, among other areas. The goal is to reduce personnel costs in administration by 20 percent by 2026.

VW Human Resources Director Gunnar Kilian shared the relevant information with the car manufacturer’s executives in Wolfsburg this afternoon at 1 p.m.

Accordingly, VW wants to pay a special bonus of 50,000 euros for employees in a first phase, the so-called turbo phase, if they sign termination agreements. This applies to employees in the tariff, tariff plus, AT aM and management. The offers are targeted at the respective board departments.

Sea Information from Wirtschaftswoche More details about the severance pay bonuses beyond the turbo bonus have now become public. Accordingly, the smallest possible severance payment is 17,700 euros. According to Wirtschaftswoche, it applies to everyone who has been employed at Volkswagen with a collective agreement for up to five years. According to the report, the highest possible severance payment should be 404,700 euros and apply to everyone who has worked at VW for at least 20 years and is in the highest tariff level “tariff plus”.

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In order to create incentives, employees should be paid special bonuses in the first phase. However, two requirements must be met: Employees who want a termination offer must first register between April 29, 2024 and May 31, 2024. Employees and companies must then agree to the specific offer to repeal (“double voluntariness”). It is said that the offer applies exclusively to the administrative area in which the aim is to reduce personnel costs.

In the area of ​​partial retirement, the Group Board of Directors is also taking a new approach: In addition to opening up the age group of 1967, it has also decided to reopen the age group of 1965 and extend the registration period for those born in 1966.

“We are currently seeing great interest in our attractively designed partial retirement,” said Human Resources Director Gunnar Kilian, according to an internal communication. “With an average of 85 percent of their salary in the active and passive phase, we offer our colleagues the transition to a financially secure retirement. At the same time, partial retirement offers the company the opportunity to reduce staff in a sustainable, socially acceptable manner.”

This article appeared on April 15 and has been updated.

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