Note published in El Financiero in the Empresas [Companies] section by Erick Almanza.
Read the note in its original source
The Volkswagen strike was averted this Tuesday, hours before the call for the suspension of activities made by the assembly plant’s Union was due to start. Out of all of the German firm’s factories in the world, the Puebla plant was the only one that granted an increase in salaries.
The final agreement was for a 5.46 percent integral increase to the workers’ earnings.
Even though, in face of the coronavirus pandemic, the German firm suspended operations for over two months in Puebla, the majority of unionized workers decided not to postpone the salary review for this year and requested an increase of 12 percent in their earnings, contending that, although the company’s situation was understood, employees had also had an approximate reduction of 40 percent in their income and need to compensate the damage.
The German assembler stated that none of its plants around the world has had a salary increase due to the economic crisis resulting from stopping operations because of COVID-19. Nevertheless, the firm relented with a counteroffer to the Union.
Negotiations were conducted in total secrecy by both parties, since the Volkswagen Independent Union of Automotive Industry Workers did no provide information to its workers on the progress being made either and only announced that they hoped to reach an agreement.
Sources inside the transnational firm informed this medium that the German Firm was not willing to grant an increase above inflation, which was of 2.8 percent in 2019.