Sale slump “grants” the FAW-VW employees the longest holiday but a lower salary

Gasgoo.com (Shanghai June 29) -With FAW-VW experiencing sales slump for two consecutive months, its workers couldn’t avoid their nightmare to get pay cuts. Meanwhile, FAW granted his workers a longest vacation of about half month in its history to celebrate the establishment of FAW’s initial factory, but mostly to relieve the inventory pressure of the dealers.

In June 15, when FAW-VW workers received their salary of May, they found all they got was about 3,000 CNY including none one-off bonus and less overtime pay. The salary had lowered by up to 20%. Li Pengcheng, the spokesman of Faw-Volkswagen Automotive told the reporter that the worker’s salary was depended on the output and sales of the previous month. According to a reliable inside source the one-off bonus will be given in June in accordance with the labor productivityand the company’s benefits. It is still uncertain that if there will be one-off bonus in the second half of this year.

To celebrate the establishment of FAW’sinitial factory, FAW-VW, as a subsidiary of FAW has the right to give employees a short holiday in around July 15, whose length could be altered independently. However, suffered with heavy production task, the FAW-VW had always set the shortest holiday among all the subsidiariesof FAW. And the Chengdu factory of FAW-VW, who bares the heaviest production burden among all the factoriesFAW-VW, gaveonly a three-day holiday for 2012 and 2013, and no holiday but only shift change for 2014.

But, the Chengdu factory enjoyed a 13-day long holiday for this year’s celebration, the longest celebration holiday in FAW-VW’s history. An insider of FAW-VW stated that such a long holiday is to relieveits high pressure of large inventory, which is resulted from the low sales in the first half of this year.

According to the statistics of FAW-VW, FAW-VW’ssales unit in April is 127,200, a 14.7% year-on-year slide; and the sales for May is 132,600 units, falling 14% compared with the same period of last year. However, FAW-VW’s sales slide of May is even sharper in the statistics of China Passenger Car Association than it self’s, which is 125,200 units, a 22% reduce on a year-on-year basis.

The sales slide is contributed by various factors. The main models have experienced production halt and reformation, which in turn results to sales slide. Besides, the overall downturn in China’s passenger car market has affected the sales of FAW-VW, whose main models are sedans. What’s more, in the same period (April and May) of 2014, FAW-VW gained a sales increase of around 30%, remainingas the top sales in the Chinese car market for two consecutive months, based on which the overall downturn is more obviously reflected on FAW-VW’s sales of this year.