**Volkswagen Group, Porsche SE reach tentative agreement on collective bargaining** **Key points** * The Volkswagen Group and Porsche SE, two of the world's largest automakers, have reached a tentative agreement on a new collective bargaining contract. * The agreement, which was reached after several months of negotiations, will cover more than 600,000 employees in Germany. * The agreement includes wage increases, bonuses, and other benefits, as well as measures to improve working conditions. **Details of the agreement** The tentative agreement includes the following key provisions: * A 3.2% wage increase for 2023 * A one-time bonus of €2,000 * Increased employer contributions to the company pension plan * Measures to improve working conditions, such as increased flexibility and reduced overtime **Significance of the agreement** The agreement is significant because it will set the pattern for collective bargaining in the German auto industry. It is also the first major collective bargaining agreement to be reached since the COVID-19 pandemic began. **Reaction from the parties** Volkswagen Group and Porsche SE have both expressed satisfaction with the agreement. "We are pleased to have reached this agreement, which is a fair and balanced outcome for both the company and our employees," said Volkswagen CEO Herbert Diess. "This agreement is a sign of the strong partnership between the Volkswagen Group and its employees," said Porsche CEO Oliver Blume. **Next steps** The tentative agreement will now be put to a vote by the members of the IG Metall union. If the agreement is approved, it will be formally signed by the Volkswagen Group and Porsche SE. **Conclusion** The tentative agreement between the Volkswagen Group and Porsche SE is a significant development in the German auto industry. The agreement will set the pattern for collective bargaining in the sector and will have a major impact on the lives of hundreds of thousands of employees.
