19 August, 2011The agreement with the company also includes a one-off payment for union members, employment contracts for temporary workers and company contributions to the cost of school materials for the children of union members.
MEXICO: The Volkswagen Workers' Union (SITIAVW) has reached agreement with the company, a few hours before a strike was scheduled to begin. The agreement included a six per cent pay rise, a 661 peso one-off payment to all union members and employment contracts for 500 temporary workers.
The union's general secretary, Víctor Jaime Cervantes Rosas, told local media that the company and union reached agreement at 4am and therefore avoided a strike.
The union leader said workers were satisfied with the six per cent pay rise because it was above the inflation rate and higher than the pay rises agreed with other companies in the automotive industry, which had been the union's objective.
He also explained that the company will make a contribution towards the cost of school materials for the children of more than 11,800 union members, irrespective of the number of children they have.
The union initially demanded a 13 per cent pay rise but then lowered its demands to 7.5 per cent. The company began by offering 4.5 per cent, employment contracts for 400 temporary workers and a contribution towards school materials only for workers with two or more children.