Volkswagen offers pay-offs for employees who quit major Russia plant

Volkswagen autos are witnessed at a VW dealership in the Queens borough of New York, September 21, 2015. REUTERS/Shannon Stapleton

June 9 (Reuters) – Volkswagen (VOWG_p.DE) is providing pay out-offs to its workforce at a vehicle assembly plant in Nizhny Novgorod, Russia, if they concur to stop voluntarily, the carmaker claimed on Thursday.

The offer of financial compensation and health care insurance until eventually the end of 2022 was obtainable to the close to 200 persons operating at the Nizhny Novgorod plant, a Volkswagen spokesperson said, confirming an before report by Kommersant paper.

Volkswagen declared in March that generation at its Kaluga and Nizhny Novgorod internet sites would be suspended right until further more notice for the reason that of Western sanctions, and automobile exports to Russia would be stopped with fast effect. read a lot more

Even though Volkswagen owns its Kaluga plant straight, employing around 4,200 employees there, it does not possess the Nizhny Novgorod plant but has a contractual settlement with operator GAZ Group to assemble numerous of its versions there, in accordance to the Volkswagen Group’s Russia site.

The U.S. treasury department in January shortened two licenses for GAZ Team, which has been sanctioned since 2018 but provided licenses for sure transactions, owing to Russia’s collecting of troops on the border with Ukraine. study more

Kommersant cited union resources as expressing that personnel who agreed to the firm’s offer just before June 17 would obtain six months’ income.

Reporting by David Ljunggren, Victoria Waldersee Modifying by Muralikumar Anantharaman, Kirsti Knolle

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