VW ups worker pay in recession-hit Germany

Volkswagen's workers in Germany might not be seeing a positive economy directly out their windows, but the automaker's strength elsewhere will put extra money in their pockets beginning later this year.

The German automaker has agreed to a nearly 6 percent pay raise for its manufacturing workers to be doled out between September 1 and next July. Beginning this fall, workers will see their base pay increase 3.4 percent, while it will climb another 2.2 percent on July 1, 2014. 

VW and union IG Metall worked out the agreement that will cover 102,000 workers spread across six assembly plants in western Germany. Also included in the union are workers in its financial services unit. 

Despite a modest gain in European sales last month, automakers continue to struggle on the continent. VW's strength comes primarily from outside of Europe, in China and the Americas, which helped it post a $14.9 billion gross profit last year. 

VW is profitable in the U.S., although its sales are off by 0.1 percent through the first four months of 2013.