VW, IG Metall union reach deal in pay talks for German plants

A VW emblem is pictured on a Volkswagen car in a delivery tower at the plant of German carmaker in Wolfsburg, Germany, April 28, 2016. REUTERS/Fabrizio Bensch

HAMBURG (Reuters) - Volkswagen VOWG_p.DE and Germany's powerful IG Metall labor union have agreed a pay increase for around 120,000 workers at the carmaker's western German plants, the union said on Friday, without providing further details.

VW head negotiator Martin Rosik and IG Metall labor boss Hartmut Meine are to present details of the deal at a news conference in Hanover, Germany, at 10.00 a.m. local time (0800 GMT).

IG Metall had sought a 5 percent pay rise over 12 months for the workers at VW, which last month reported a 4.1 billion euro ($4.6 billion) operating loss for 2015 due to huge provisions to cover the cost of an emissions test-rigging scandal.

The union, Germany’s biggest, is a trend-setter in national wage bargaining and represents employees at all of Germany’s major carmakers as well as in manufacturing, industrial production and steelmaking. This month it won a 4.8 percent raise over 21 months for 3.8 million German workers.

Reporting by Jan Schwartz; Writing by Maria Sheahan