BERLIN (Reuters) – A reduction in bonuses for Volkswagen (ETR:) management will lead to a 10% pay cut over the next two years, newspaper Sueddeutsche Zeitung reported on Sunday, after the German carmaker arrived to an agreement with unions to eliminate jobs and reduce production.
The reduction will apply to May bonus payments, leading to a 10% pay cut in 2025 and 2026 for 4,000 managers, the newspaper said. Over the next three years, their salaries will fall by 8%, 6% and 5%, he added.
A Volkswagen spokesman declined to comment on the report. Representatives of the IG Metall union and the company's employee works council could not immediately be reached for comment.
Volkswagen, Europe's top carmaker, announced sweeping changes to its German operations on Friday, including more than 35,000 future job cuts and sharp capacity reductions in the deal reached with unions after days of grueling talks.
The agreement sought to avoid mass strikes at the company, whose problems have highlighted a broader slowdown in German industry.
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