BERLIN (Reuters) – Volkswagen (ETR:) management will take pay cuts that will amount to more than 300 million euros ($310.08 million) by 2030, according to comments from VW HR board member Gunnar Kilian to local newspaper Braunschweiger Zeitung published on Wednesday. .
Volkswagen’s board of directors will receive a larger share, proportional to their salaries, than the rest of management or employees, Killian told the newspaper, declining to provide further details.
In December, Volkswagen and unions reached a landmark cost-cutting agreement for the automaker, vowing to cut its workforce by 35,000 by 2030 and cut capacity at its German plants by 734,000 units.
VW said the deal would save 15 billion euros annually over the medium term, including 1.5 billion in labor costs.
During negotiations, unions said leaders should also do their part to take pay cuts, blaming the automaker’s ailments on poor strategic decisions by management.
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