Volkswagen raises workers’ wagesAugust 19, 2020
The German automaker’s union said Volkswagen Mexico has agreed on a 5.46% increase in wages and benefits.
Manuel Aburto, a spokesman for the Independent Automotive Workers Union, said the new collective bargaining agreement for 2020-21 includes a 3.62 percent wage increase and a 1.84 percent increase in “benefits”.
The 3.62 percent increase is in line with the annual inflation rate recorded in Mexico in July. Workers have struggled to get wage increases since the pandemic hit the economy in late February.
Volkswagen union members in the central state of Puebla, where Volkswagen operates one of the country’s largest car factories, have pushed for a 12% wage increase and threatened to strike by 18 August.
The plant, which employed 11,364 people as of May, including administrative and technical personnel, produces Tiguan, Jetta and Golf models for sale in the United States, Mexico and other markets.
“This is a feat given these difficult times, including the pandemic and the work situation,” Aburto said, adding that more details will be provided.
The new agreement, concluded after more than three weeks of negotiations, went into effect on Tuesday at 11 a.m. local time, Volkswagen Mexico said in a statement.
In April, Volkswagen said it had reached an agreement with the German metalworkers union IG Metall to maintain its previous wage agreement until December without a wage increase.
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