Volkswagen plant employees in Puebla reject wage increase

PUEBLA - Volkswagen de México expressed disappointment over the recent rejection by unionized employees at the Puebla plant of the 10.59% across-the-board raise that had been agreed between the company and the union.

In a statement, the company regretted that the benefits of the proposal, which protects the welfare of families by integrating a wage increase above inflation along with other benefits, have been disregarded by the majority of the vote expressed in this consultation exercise. The automaker also expressed that it has respected at all times the right to freedom of association and collective bargaining.

“We cannot fail to express our disappointment that this financial effort, which places Volkswagen in the first places in the Republic in terms of compensation levels, is insufficient, especially given the challenging environment for the automotive industry and the Volkswagen Group,” the company said.

Volkswagen de México said it was willing to resume the dialogue with the union representatives as soon as the competent authorities instruct them to do so, based on the processes established by law.

Following the rejection by the workers of the Independent Union of Workers of the Volkswagen Automotive Industry (SITIAVW) of the proposed increase, the result must be qualified and validated by the labor authorities, and after that, a new salary agreement must be sought. The company offered 7% direct wage increase and 3.59% in benefits, for a total of 10.59%.

However, Friday's vote was close, with 55.7% voting against, or 3,825 votes out of the 6,845 that were considered valid. A total of 3,020 people voted in favor of the proposed increase.

Regarding a possible strike, the workers themselves postponed the deadline to go on strike if there is no agreement, the new deadline being next Saturday, September 14.