BERLIN (Reuters) – Volkswagen (ETR:) management will take pay cuts totaling more than 300 million euros ($310.08 million) by 2030, according to comments from Volkswagen’s human resources board member. VW, Gunnar Kilian, to the local newspaper Braunschweiger Zeitung, published on Wednesday. .
Volkswagen’s board of directors would accept a larger cut proportional to their pay than the rest of management or the workforce, Killian told the newspaper, declining to provide further details.
Volkswagen and the unions reached a landmark deal in December to cut costs at the automaker, pledging to reduce staff by 35,000 by 2030 and cut capacity at its German plants by 734,000 units.
VW said the deal would allow savings of 15 billion euros annually in the medium term, including 1.5 billion in labor costs.
Unions had said during negotiations that senior figures should also do their part and accept pay cuts, blaming the automaker’s malaise on poor strategic decisions by management.
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