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VW's Skoda Auto unions reject salary freeze as part of group savings - Finance news and analysis from Global Banking & Finance Review
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VW's Skoda Auto unions reject salary freeze as part of group savings

Published by Global Banking & Finance Review

Posted on October 22, 2026

1 min read

· Last updated: October 22, 2026

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Skoda Auto Unions Refuse Volkswagen Group Salary Freeze Through 2030

Unions Reject Volkswagen's Proposed Salary Measures

PRAGUE, Oct 22 (Reuters) - Unions at Volkswagen's Czech unit Skoda Auto will not accept a salary freeze until 2030 as part of measures the group plans to get the company on a sustainable track, a union newspaper said on Thursday.

Volkswagen's Global Salary Freeze Plan

• Volkswagen plans to freeze salaries for its 660,000 staff worldwide until 2030, the group's works council said on Monday, confirming an earlier report by Sueddeutsche Zeitung.

Skoda Auto Unions' Response

• OS KOVO unions at Skoda will not accept a freeze or zero bonuses, the union's chief Jaroslav Povsik told a meeting of union members, the newspaper Skodovacky odborar, published on Thursday, said.

Skoda's Role in the Czech Economy

• Skoda, a key part of the Czech manufacturing industry with three plants and many suppliers, has been profitable with higher margins than some other VW brands.

Company's Official Response

• Skoda Auto did not immediately respond to a request for comment.

(Reporting by Jan LopatkaEditing by Tomasz Janowski)

Key Takeaways

  • VW Group has proposed freezing salaries for its roughly 660,000 employees worldwide until 2030, halting raises, bonuses and benefits for cost savings.
  • Škoda Auto unions (OS KOVO) refuse the freeze or zero bonuses, despite Škoda’s strong financial performance and higher margins among VW brands.
  • Škoda remains a high‑margin operation—Q1 2026 operating margin reached 8.3%, outperforming many other VW brands, reinforcing its bargaining strength.

Frequently Asked Questions

What salary measure has Volkswagen proposed until 2030?
Volkswagen has proposed a salary freeze for its 660,000 staff worldwide until 2030.
How did Skoda Auto unions respond to the salary freeze proposal?
Skoda Auto unions stated they will not accept a salary freeze or zero bonuses as part of the proposed measures.
Who represents the unions at Skoda Auto?
The unions at Skoda Auto are represented by OS KOVO and led by chief Jaroslav Povsik.
What is Skoda Auto's importance to the Czech economy?
Skoda Auto is a key part of the Czech manufacturing industry, operating three plants with many suppliers and is known for its profitability.

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