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The deal with the Independent Union of Volkswagen (DE:VOWG_p) Automotive Industry Workers (SITIAVW), also included a 1% increase to workers’ savings funds, the company said in a statement.
The agreement was reached in “an environment of challenges, where the automotive industry struggles to keep its recovery going after more than a year of the coronavirus pandemic, and in the face of the semiconductor (chip) shortage,” Volkswagen said.
Volkswagen is one of several automakers, including General Motors Co (NYSE:GM), Ford Motor (NYSE:F) Co and Toyota Motor (NYSE:TM) Corp , that were forced to cut production this year due to the shortage of semiconductor chips, which was caused by factors including a rise in demand for electronic devices during the pandemic and a fast recovery in auto markets.
