When In Trouble, Ask For A Raise

by | Feb 25, 2016 | News

bernd-osterloh

Bernd Osterloh

Despite Volkswagen’s lagging profit margins and potential $46 billion dollar fine for its U.S. emissions scandal, union leaders at IG Metall (Germany’s largest union) are asking for a 4.5 to 5 percent wage increase in upcoming contract negotiations. Meanwhile, in an effort to protect their brand’s reputation, Volkswagen has pledged to move its profit margin from 3 percent to 6 percent by 2017. Both VW leaders and Bernd Osterloh, IG Metall union chief, agree that the only way that pledge becomes a reality is by eliminating jobs. All this begs the question: With VW jobs already at stake, why would the union think now is the opportune time to increase the cost of labor?

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