Europe's news in English

COPY LINK

BONUSES

Scandal-hit VW gives staff €3,950 bonus

German auto giant Volkswagen announced on Friday that it is giving its staff a €3,950 bonus for 2015, despite suffering huge losses due to an emissions-cheating scandal which sent shockwaves through the industry.

Published: 14 May 2016 15:39 CEST

Scandal-hit VW gives staff €3,950 bonus

The news comes after VW also revealed huge bonuses for top executives last month, sparking a storm of criticism among employees. Photo: DPA

The pre-tax premium — less than the €5,900 handed out for 2014 — comes after VW also revealed huge bonuses for top executives last month, sparking a storm of criticism among employees, especially at a time of salary negotiations.

“Volkswagen staff provided very good work as a team, despite the difficult situation,” said VW human resources chief Karlheinz Blessing in a statement.

“Their strong commitment deserved to be recognised,” he added.

After criticism about the bosses' bonuses the automaker's supervisory board decided at the end of April to freeze 30 percent of the annual payouts for nine director-level executives.

The frozen amount will be paid out in three years if the company meets stock market targets.

The executives' bonuses sparked intense criticism both from the public and politicians, including German Finance Minister Wolfgang Schaeuble.

Volkswagen was forced to recall vehicles around the world last year after admitting it had installed so-called “defeat devices” aimed at cheating emissions tests into 11 million diesel engines.

The carmaker unveiled a loss of €1.58 billion after setting aside €16.2 billion in provisions to cover the potential fines, lawsuits and recall costs it foresees from the scandal.

Denmark signals support for zero-emissions zones in cities

Parking spaces at a charging point in Aalborg. The sign reads "reserved for electric cars". File photo: Henning Bagger/Ritzau Scanpix

The zones would only allow access to vehicles without combustion engines, such as electric cars.

Wednesday’s government proposal states that there is already demand at municipalities for zero-emissions zones in set parts of cities in order to reduce air and noise pollution.

The government said it wants to accommodate that demand while still enabling people to live, move around and shop in the zones.

“The government will therefore look closely at whether affected residents and businesses in the area have realistic alternatives and that there would be time to meet the criteria,” the government writes in the proposal.

“A framework must also be set to ensure access for necessary use of industrial vehicles, including delivery of goods,” it adds.

A long period of transition would be required in municipalities that decide to take up the option of establishing the zones, according to interest groups for the automotive industry.

Goods vehicles could be amongst those to face the largest obstacles in such a situation, as the range on zero emissions goods vehicles on the market is limited, according to the Confederation of Danish Industry (DI).

“That means it would be difficult to ensure supply to cities where the requirement for zero emissions might be effective,” DI’s CEO Lars Sandahl Sørensen said via written comment.

The association for car importers in Denmark, De Danske Bilimportører, said that the zones would be difficult to implement without a long phasing-in.

“The proposal for zero emissions zones in particular is very far reaching and can hardly be implemented without a long phasing in period, as the range of electric and hydrogen cars with sufficient range should be greater,” the organization’s CEO Mads Rørvig said in a statement.

FDM, an association for motorists in Denmark, went further in its criticism of the plan.

“It’s far too early and disproportionate to have zero-emissions zones that would exclude 98 percent of Danish motorists,” FDM senior consultant Dennis Lange said in a written comment.

“This is a symbolic policy which will have no measurable effect on pollution,” he added.

READ ALSO: Lower Danish taxes backed for home electric car charging

Url copied to clipboard!