VW shares $1.1b in profits with workers-'Profit sharing is hard earned and deserved'

[The Straight Story]

Volkswagen is coughing up a massive NZ$1.1 billion in bonuses to workers after a record year.

The company sold 9.3 million vehicles, up nearly 12 per cent, in boosting revenues by more than 20 per cent to NZ$305 billion during 2012.

That pushed its pre-tax profit to an asonishing NZ$40 billion. Net profits came in at NZ$10.1 billion.

VW's success, however, doesn't just go to shareholders with the company's German workforce sharing some of the record profits.

VW says it will pay German workers a bonus of around €7200 or a little over NZ$11,000 at the current exchange rates. The bonus is being given to around 100,000 employees in Germany.

''Profit sharing is hard earned and deserved; it is the equitable participation of employees in the success,'' said VW board member Horst Neumann.

http://www.stuff.co.nz/motoring/8426009/VW-shares-1-1b-in-profits-with-workers

[JoeBlowToo]

1. this should be the model for wealthb distribution in the USA...

Forget. About talk of the rich paying their "fair share"...

[jschurchin]

2. The thing here Joe

is that only the shareholders matter. The workers don't make the company money, they are only on the expense side of the equation. Ask any CEO or CFO.
As long as this thinking is corporate culture in Amerika, profit sharing and income equality will never happen in Amerika.

[JHB]

3. Are employees represented on VW's board?

I know Germany has requirements for employee representation, but I don't know if it's universal or just for some forms of organization. Nor which category VW falls under.

[CosmicDustBunny]

4. Good for them. I don't like their products, but that's an excellent thing to do.