Extra 5.2% in Portugal

Workers at Volkswagen’s Autoeuropa plant in Portugal have agreed an extra 5.2% pay increase to take account of rising prices. The works council, which, unusually for Portugal, negotiates for the plant’s 5,100 employees, signed a two-year deal in March this year providing for a 2% increase in both 2022 and 2023. Rising inflation (10.1% in October) has undermined living standards,and the works council demanded an extra increase. The company initially offered a one-off payment of €400 in December. However, following a two-day strike in November, the two sides agreed on a 5.2% increase from December 2022. This replaces the 2% increase previously agreed from January 2023.