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5 September, 2001The IMF Mexican Project Office reports the strike at Volkswagen Mexico is over.
MEXICO: On September 5, Volkswagen management and Mexican union leaders reached a wage deal to end the 19-day strike at VW's plant in Puebla. After a marathon negotiating session, the two sides struck an accord that gave the workers a 10.2 per cent wage hike.
It also includes an increase in food-coupon benefits equivalent to 3.5 per cent of salary, and a further 1 per cent hike for assistance in buying school supplies for workers' children. This means a 14.7 per cent increase in the overall package for the workers.
"The deal has been struck," union leader José Luis Rodriguez told Reuters, adding that VW agreed to pay 50 per cent of the wages the workers lost during the strike.
The VW Mexico plant has 16,000 workers, 12,300 of whom are unionised. Last week, workers overwhelmingly rejected the automaker's offer of an 8.5 per cent wage hike plus increased benefits.
It also includes an increase in food-coupon benefits equivalent to 3.5 per cent of salary, and a further 1 per cent hike for assistance in buying school supplies for workers' children. This means a 14.7 per cent increase in the overall package for the workers.
"The deal has been struck," union leader José Luis Rodriguez told Reuters, adding that VW agreed to pay 50 per cent of the wages the workers lost during the strike.
The VW Mexico plant has 16,000 workers, 12,300 of whom are unionised. Last week, workers overwhelmingly rejected the automaker's offer of an 8.5 per cent wage hike plus increased benefits.