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Volkswagen workers in Mexico empower union to call strike

Volkswagen workers in Mexico empower union to call strike

Autoworkers at Volkswagen’s (OTCMKTS: VWAGY) plant in Puebla, Mexico, recently voted to go on strike if wage negotiations can’t be settled by Aug. 18.

More than 3,100 members of the Independent Union of Workers of the Volkswagen Automotive Industry (SITIAVW) approved union representatives to negotiate a salary increase and that the review be carried under the terms of the workers’ collective bargaining agreement.

Volkswagen’s plant in the central Mexican city makes the Taos, Tiguan, Jetta and Golf models for sale in the U.S., Canada, Mexico and other markets, and is one of the largest auto factories in the country.

The SITIAVW vote took place Friday and the results were released Monday. Union officials have not specified how much of a salary increase they are seeking. More than 1,600 workers voted against empowering the union to strike.

In 2020, SITIAVW sought a 12% wage increase for workers. The proposal was rejected by Volkwagen, which negotiated a 3.62% wage increase and 1.84% increase in benefits.

Worker pay at Volkswagen’s plant in Puebla ranges from about $15 per day for new employees to more than $50 per day for veteran workers.

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2 June 2021, 00:16