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Volkswagen Grants €1,250 One-Time Bonus to Tariff Staff in May

The payout follows union pressure after a €6 billion cashflow surprise alongside criticism of executive bonuses.

Overview

  • Volkswagen reversed a December 2024 deal that had scrapped the customary May profit-sharing payment for this year.
  • The €1,250 gross recognition bonus will go to roughly 100,000 tariff employees at six western German plants and three Saxon works.
  • The Osnabrück site is excluded under its separate wage agreement, with a distinct jubilee payment planned there.
  • Talks were heated, with the works council pushing for €1,500 and the board initially favoring up to €500 before Daniela Cavallo secured €1,250.
  • The decision comes as VW reported after-tax profit down 44% to €6.9 billion, faced scrutiny over a roughly €6 billion net cashflow and executive bonuses, and advances a restructuring expected to trim tens of thousands of jobs.