Volkswagen México agrees to salary increase to avoid strike

Note published in El Sol de México, Finanzas [Finance] Section by Reuters.
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Volkswagen México announced that they reached an agreement with its workers in regard to salaries, thus avoiding the beginning of a strike, after three weeks of negotiations in the middle of a situation complicated by coronavirus.

The German automaker called in July to its thousands of employees at the Puebla plant to consider alternative solutions to a 12% salary increase originally requested by the union, with the objective of maintaining the company’s stability.

The company reached an agreement with the workers on an increase of 5.46% of which 3.62% is a direct increase in wages and the remaining 1.84% is an increase in global benefits, Manuel Aburto, spokesman of the Volkswagen worker’s union informed Reuters.

“This is quite a feat, given the difficult times such as the pandemic and the labor situation”, he stated in a telephone interview.

Volkswagen, for its part, highlighted in a statement that the understanding was reached with the employees “in the middle of an unprecedented public health and economic crisis”, which forced it to paralyze its local operations for three months in order to contain the outbreak.