Volkswagen Group Rus Plant Starts Production after an Annual Factory Leave

KALUGA, RUSSIA – August 24, 2012: Every year, the employees of Volkswagen Group Rus plant in Kaluga have their annual leave in the end of July, to start producing cars under Volkswagen, Škoda and Volkswagen Commercial Vehicles brands later in August. In the forthcoming year, the factory plans include increasing production volumes according to the terms of the Industrial Assembly agreement signed with the government of Russian Federation.

“Overall, Volkswagen Group Rus plans to increase its production volume up to 350,000 vehicles per year until 2018, — says Marcus Osegowitsch, general director of Volkswagen Group Rus. — For Kaluga plant, these plans mean increasing production up to 225,000 vehicles per year. We strive to perform according to our goals, as well as to the terms of Industrial Assembly agreement, and the Kaluga plant plays a crucial role in it”.

Current production volumes for Kaluga plant amount to 160,000 vehicles under Volkswagen, Škoda and Volkswagen Commercial Vehicles brands. Also, production of Škoda Octavia is to be moved to Nizhniy Novgorod plant in 2013, with another Škoda vehicle taking its place at Kaluga’s production line.

This year, the annual factory leave coincided with a number of significant changes for Volkswagen Group Rus employees at Kaluga plant. In particular, a new payroll system was introduced, and a collective agreement was signed between Kaluga plant employees and the plant management. With new payroll system in effect, the Volkswagen Group Rus employees at Kaluga plant gain significant benefits as the salary level is now based on the grade system. Thanks to the transparency of the grade system, which is working smoothly in many Russian companies, the new payroll system will enable Kaluga plant employees to make more informed decisions about their horizontal career paths.

“In 2013, the plant management plans to continue working on social benefits, — Josef Baumert, head of Volkswagen Group Rus factory in Kaluga, says. — Kaluga plant is responsible for a significant part of Volkswagen and Škoda vehicles sold in Russia, and it is very important for us to keep the production process, working conditions and payroll levels in accordance with Volkswagen AG policies”.

Last year, Volkswagen Group Rus has significantly increased the level of social guarantees for the plant employees. For example, all Volkswagen Group Rus employees in Kaluga are now entitled to a health insurance scheme. The payroll is also being adjusted constantly in compliance with inflation levels in Russian Federation, with this year’s new payroll system effectively increasing the salary level by 9.2%. At the moment, the salary level at the Kaluga plant is higher than the average salary level in Kaluga region, while the salary level growth at the plant has amounted to 69% in last three years.