Volkswagen de Mexico and union reach early deal, avert strike

By Reuters News

Oct 22 (Reuters) - Volkswagen VOWG.DE and the workers' union at its facility in central-eastern Mexico reached an agreement averting a strike scheduled for Thursday.

The 12-month agreement revising the collective labor contract remains subject to consultation and will be put to a vote by unionized workers on October 29, the company and the union said in separate statements published late on Wednesday.


• The assembly plant in the Mexican state of Puebla is one of Volkswagen's biggest plants and a major export base for North America.

• The deal sets a total increase of 8.24% for its workers, including a 4.4% direct wage rise, a one-time payment and a savings fund, the union specified.

• The carmaker said it considered this the final step of the dialogue and negotiation process with the Automakers' Union, noting it does not foresee another round of talks.

• The latest agreement was reached through conciliation talks supported by the labor ministry and the Federal Center for Conciliation and Labor Registration, the ministry said in a separate statement.

• Earlier, members of the union rejected a proposed 13.16% across-the-board wage increase valid for two years, Reuters reported.

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