Managers in Germany’s Volkswagen Group have again failed in their attempts to force through bonus payments and salary increases by legal action, according to a ruling issued on Monday by a labour court sitting in the city of Braunschweig.
The applications in two cases had been completely rejected, the court said. It had in mid-October thrown out 23 actions brought by former VW managers contesting the carmaker’s cutbacks.
The managers, who are not covered by collective bargaining agreements, are demanding payment of a second tranche of an inflation compensation bonus to the amount of €1,000 ($1,060) as well as an increase of 3.3%.
VW decided in the spring to include management in its radical restructuring programme, with the result that increases and bonuses would no longer be paid out.
The court ruled that pledges made by VW were not binding. This would have required written changes to their contracts. A VW statement from March this year was insufficient for this purpose, the court found.
The court made a single exception in awarding a bonus payment of €1,000 to a plaintiff based on a change to his contract. But it did not allow a pay increase to the manager concerned.
According to the court, almost all the plaintiffs were in early retirement, having ceased work at the company but still being shown on its salary lists.
Most of the plaintiffs in the cases to date have said they will appeal. According to a labour court spokesman, a further 70 cases are pending.
In ongoing negotiations with the trade union IG Metall, the carmaker is demanding a pay cut of 10% as well as cuts to various allowances and bonuses.
According to the company’s works council, at least three plants and tens of thousands of jobs are also under review.
VW postpones planning session due to negotiations
The carmaker said on Monday it is postponing its planning session, scheduled for Friday, until negotiations with the trade union IG Metall and the works council have concluded.
The meeting of the board of directors and the supervisory board is still set to take place, according to company sources.
The planning session typically takes place in November and determines plant allocation and the distribution of investments for the next five years.
Two years ago, the new chief executive Oliver Blume postponed the session until the new year in order to take stock. A power struggle between Blume’s predecessor Herbert Diess and the works council also caused the planning session to be delayed in 2021.
VW is to meet IG Metall for a third round of negotiations next week.
