The collective agreement negotiated for Volkswagen AG defines key elements of a restructuring programme designed to align productivity, labour costs and capacity utilisation with the competition. For the six German plants, the abolition of the four-day week introduced in 1994 is the central item of the agreement. A rise in working time to a maximum of 33 hours a week for production and a maximum of 34 hours a week for administration is coupled to production commitments securing capacity utilisation and jobs for the coming years. In return for waiving a pay increase reflecting the increase in working hours, employees receive a lump-sum one-off payment to the company pension scheme. The collective agreement also introduces a new profit sharing system under which the profit-related bonuses could in future be significantly higher than in the past.