BERLIN, Oct 30 (Reuters) - German carmaker Audi is in favour of offering employees one-off tax-free payments instead of permanent wage increases, its human resources director said, as unions across Europe's biggest economy demand higher wages in light of rising inflation.
Workers' purchasing power in Germany has already taken a hit, with consumer price inflation at 11.6% in October.
Employers, however, do not see much scope for wage increases due to the rising costs of material and energy.
But such payment could be a way to reach an agreement, Audi HR Director Xavier Ros said, adding that responding to rising consumer prices with significant wage increases would harm the economy in the long-term.
Audi, a Volkswagen Group (VOWG_p.DE) brand, is not itself a direct partner in the wage negotiations, but it adopts the talks outcomes in a collective wage agreement.