Volkswagen struck a deal with workers at its Mexican plant to avoid a strike
By Andrew C., 26 Aug, 2010. 0 Comments
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In Mexico, Volkswagen AG was able to avoid a strike threatened by the workers union at its plant by agreeing to a 6.1% wage increase. Volkswagen is one of Mexico's top automakers. VW's Puebla factory in central Mexico is its only plant in North America, and it is also the only plant in the world to make the New Beetle model. Most of the cars produced here are sent to the US, Canada and Europe. In a statement, VW said that it had agreed to the wage increase. The union had initially asked for a 7.6% pay increase. VW responded with an offer of a 3.8% increase in salaries plus a modest increment in benefits but the union rejected this. Mexico's current inflation rate is 3.64%. Mexico's auto industry suffered greatly during the recession last year but it has since recovered strongly. However, July production had climbed at a slower rate than the surge in June as the US economy has recently weakened. This plant has had labor disputes before. In 2009, the union staged a four-day walkout before signing a new labor contract.
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