FRANKFURT, Feb 7 (Reuters) - Volkswagen AG might reach an agreement soon with trade union workers demanding a six percent pay increase, a spokesman for the carmaker said late on Monday.
Economists are closely watching German wages as a signal both for a potential improvement in household spending, as well as for second-round inflationary effects, and the talks between VW and its workers is an indicator for next year's collective wage bargaining in the engineering sector.
'An agreement looks possible ... we want to strike a deal even tonight,' he added on the sidelines of the wage bargaining talks.
The agreement would affect around 100,000 workers employed at six plants located in western Germany.
A spokesman for the IG Metal union of metal workers said: 'It would still be a tough meeting tonight.'
German unions rejected on Friday an offer from Volkswagen that would give workers a pay rise of 2.9 percent over the next two years and a one-time payment of 300 euros before the end of June.
(Reporting by Jan Schwartz; writing by Marilyn Gerlach; editing by Andre Grenon) Keywords: VOLKSWAGEN/WAGES (marilyn.gerlach.reuters.com@reuters.net +49 69 7565 1279) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Economists are closely watching German wages as a signal both for a potential improvement in household spending, as well as for second-round inflationary effects, and the talks between VW and its workers is an indicator for next year's collective wage bargaining in the engineering sector.
'An agreement looks possible ... we want to strike a deal even tonight,' he added on the sidelines of the wage bargaining talks.
The agreement would affect around 100,000 workers employed at six plants located in western Germany.
A spokesman for the IG Metal union of metal workers said: 'It would still be a tough meeting tonight.'
German unions rejected on Friday an offer from Volkswagen that would give workers a pay rise of 2.9 percent over the next two years and a one-time payment of 300 euros before the end of June.
(Reporting by Jan Schwartz; writing by Marilyn Gerlach; editing by Andre Grenon) Keywords: VOLKSWAGEN/WAGES (marilyn.gerlach.reuters.com@reuters.net +49 69 7565 1279) COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2011 AFX News
