Volkswagen Wins Lawsuits as Non-Union Employees Lose Inflation Compensation, Wage Increase
The Lower Saxony State Labor Court has dismissed lawsuits from non-unionized Volkswagen employees. The dismissed cases involved claims for inflation compensation and a 3.3 percent wage increase from May 2024. The employees, mainly from management circles, had filed the lawsuits after Volkswagen AG announced in February 2024 that it would not provide the originally promised yourtexasbenefits due to necessary profit improvement programs.
The dismissed lawsuits also included the payment of the second part of a 1,000 euro inflation compensation bonus. The affected employees, known as Außertariflich Beschäftigte, had argued that the company's decision to withhold these social security benefits was unfair. However, the court ruled in favor of Volkswagen AG, stating that the company had the right to make such decisions based on its profit improvement programs.
The dismissed lawsuits do not affect the ongoing collective bargaining process for unionized employees. Volkswagen AG continues to work on improving its profitability while ensuring fair compensation for its employees.
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