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Volkswagen agrees to 3.2 percent pay hike

Carmaker Volkswagen said Tuesday it had agreed to a 3.2 percent wage hike with trade union IG Metall, setting a key benchmark for Germany's booming economy.

Volkswagen agrees to 3.2 percent pay hike
Photo: DPA

VW and IG Metall also agreed on a one-off bonus equal to one percent of a worker’s annual pay, with a minimum payment of €500 ($680), a statement said.

The pay increase is to take effect on May 1, effectively bringing it forward by eight months, Volkswagen added.

“The company and IG Metall have found a fair solution that offers a very decent rise in pay while preserving competitiveness,” VW personnel director Horst Neumann was quoted as saying.

IG Metall official Hartmut Meine said “the conclusion of this agreement takes into consideration the solid economic situation of major European car makers and compensates personnel for their performance.”

The agreement is valid for 16 months.

Auto analyst Frank Schwope at NordLB bank said it came at the right time for VW, which can profit from a global revival in auto sales without fear of labour unrest throwing a wrench into the works.

Like its German rivals, VW had thousands of its employees work shorter hours during the global economic slowdown while unions kept pay demands to a minimum to preserve jobs.

With auto production on the rise again, companies like VW and parts group Bosch have sought ways to repay staff for their sacrifice without eroding their own competitive positions.

“The agreement between VW and IG Metall should serve as a symbol for the entire auto sector and similar deals with car and parts makers would not be surprising, in particular owing to stronger inflation in recent months,” Schwope said.

Last week, the national statistics office said German salaries rose by an average of 1.4 percent last year, although workers in the key manufacturing sector benefited from an average increase of 4.4 percent.

Falling unemployment and higher wages are expected to encourage consumption in Germany, the biggest economy in Europe, and help redress trade imbalances with eurozone partners.

AFP/adn

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WORKING IN GERMANY

Which Bavaria-based companies regularly hire English speakers?

Bavaria is no doubt a beautiful state with a strong economy, but can be a hard place for non-German speakers to integrate. The Local takes a look at job opportunities in Germany’s southeastern 'Free State.'

Which Bavaria-based companies regularly hire English speakers?

Munich ranks third in German cities with the highest total GDP, behind Berlin and Hamburg, but in terms of GDP per capita, it’s higher than both of them.

It also consistently ranks high, often highest, in terms of average household income.

As of 2023, nine of the 40 companies listed on DAX, Germany’s stock index, were based in Bavaria. Seven of those are based specifically in Munich.

While Frankfurt is commonly known to be Germany’s business capital, Munich can claim the title of Germany’s insurance capital, which is saying something, as Germany is home to some of the largest insurance firms in the world, like Allianz.

Beyond the state’s capital city, a number of international companies are based elsewhere in Bavaria, particularly in the Franken region, near Nuremberg.

Which companies actively hire English speakers?

Bavaria, and Munich in particular, is home to a number of companies at the forefront of international business. But the state is known for its traditional, sometimes conservative, culture, which affects its business culture as well.

Whereas companies embracing English as their primary business language are easy to find in Berlin, the practice is less common in the south. That said, there are some notable exceptions. 

Sportswear giants, Adidas and Puma, both have their headquarters near Nuremberg in Herzogenaurach, and regularly recruit English speaking international talent.

“As an international company, our teams reflect the rich diversity of our consumers and communities,” Jon Greenhalgh, Senior Manager Media Relations for Adidas told The Local. “Fostering a culture of inclusion where we value and leverage differences, ensures that we can authentically engage with our employees and truly connect with our consumers.”

He added that around 40 per cent of Adidas’ Germany-based employees are foreign nationals, from over 100 different countries.

Siemens and BMW rank among Bavaria’s top employers, and are also known to hire their fair share of foreigners.

“In Germany, we recently had around 2,000 open positions,” Konstanze Somborn told The Local on behalf of Siemens AG.

He added that Siemens operates in 190 countries. “That is why we value international teams very much…English as a common language is very usual.”

READ ALSO: ‘Which German companies want to hire foreigners?’

Similarly, BMW hires workers from a variety of backgrounds. 

“Every year, we hire lots of internationals and welcome them to the BMW Group,” Dr. Hans-Peter Ketterl, a press spokesman for BMW Group told The Local. 

But not all of these positions are available to non-German speakers.

Ketterl added that BMW’s working language is German in the country, even though, “English is an indispensable entry requirement as the second corporate language in many areas of the company.”

Check job boards and follow best practices

If it’s your first time applying for jobs in Germany, make sure to change your resume to the German format, even for English positions.

While Germany is home to its own job boards, like Xing, LinkedIn is probably the best place to start. In addition to searching for positions based in your preferred location, you can check relevant groups, like Munich Startups, to broaden your horizons.

The English Jobs in Germany website is also a good resource to start with. 

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