VW works council demands recognition bonus for employees

In view of the surprisingly good cash situation at VW, the works council is now calling for a bonus for employees covered by collective agreements. Head of the Works Council Daniela Cavallo justified the move with the six billion euros by which Volkswagen had recently adjusted its cash flow upwards. "If everyone together has now delivered such a good performance in terms of cost discipline," said Cavallo in a special edition of the Works Council newspaper "Mitbestimmen", which was obtained by dpa, "a recognition bonus is only fair. We demand this for all in-house employees - including those in Saxony."

According to the General Works Council, the bonus could be paid in May. This is the month in which VW has traditionally paid out the flexible pay bonus, which will no longer be paid this year. The reduction was part of the savings package agreed between IG Metall and the Group last year shortly before Christmas following tough collective bargaining negotiations. The flexible bonus is not due to return until 2028. However, the almost 1,900 euro advance payment on the bonus in November was not touched.

From zero to six billion

Cavallo initially left open how high the bonus could be. Whether the proposal would succeed at all and if so, how much, would now have to be negotiated with the Executive Board. According to the information provided, a water mark could be reached at the next works meeting at the main plant on March 4. VW has more than 120,000 employees at its plants in Lower Saxony, Hesse and Saxony.

VW had surprisingly announced on January 21 that the cash flow in 2025 had turned out to be significantly better than previously assumed. Instead of the previously targeted zero euros, it is now six billion euros. CFO Arno Antlitz spoke of a "result of intensive cost work in the areas of upfront expenditure - i.e. in development and investments - as well as in the management of our inventories".

In simple terms, cash flow is about "the money that actually remains in the till", as Antlitz put it. This key figure has nothing to do with turnover or even profit. Cash flow can be influenced, for example, by postponing payments to the following year or by bringing forward revenue.