VW agrees to 8.5% pay hike, less than inflation

Compensation agreement between the metalworkers’ union IG Metall and Volkswagen Group for the automaker’s western German operations would see earnings increase by 8.5 percent for around 125,000 workers. Up until recently, the arrangement made public on Wednesday would have been regarded as exceedingly generous, but it is currently below inflation, which in Germany, the continent’s largest economy, was 11.6 percent last month. 2022