(In the 1st paragraph, 4th sentence, “revision” was replaced by “appeal.”)
HANNOVER (dpa-AFX) – VW (Volkswagen (VW) vz) was not allowed to reduce the bonuses of employees who had an anniversary on January 1, 2025. The Lower Saxony State Labor Court decided this in the first two cases. VW would have to pay the difference to both of them. The court thus confirmed judgments of the Braunschweig Labor Court from last September and rejected VW’s appeal. The verdict is not yet final. Additional cases are pending in mid-June.
The background is the collective bargaining agreement at Volkswagen shortly before Christmas 2024. After a long struggle, the group and IG Metall agreed on a restructuring plan for the core VW brand. The agreement also provided for cuts in the anniversary bonuses that VW pays its employees after 25 and 35 years of service.
The issue before the court was when the regulation would apply. The deadline for the reduction was actually January 1, 2025, but the contract was only signed three weeks later on January 21, 2025. Several employees whose anniversary fell between these two dates went to court – and demanded that the better, old regulation be applied.
However, only cases that had their anniversary on January 1st were heard before the State Labor Court. According to the old regulations, there was a bonus of 1.45 monthly salaries after 25 years, and even 2.9 monthly salaries after 35 years, as IG Metall announced after the collective bargaining agreement. According to the new regulation, there is now a flat rate of 6,000 euros after 25 years and 12,000 euros after 35 years.
The plaintiffs were only partially successful before the Braunschweig Labor Court: the court ruled in favor of everyone whose anniversary fell on January 1, 2025, in September and awarded them the higher bonus according to the old regulations. For all others whose anniversary fell between January 2nd and 21st, 2025, the court declared the reduction to be legal in November. It is still unclear how the State Labor Court will decide in these cases./fjo/DP/stw/he
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