Volkswagen Mexico Concludes Wage Negotiations

Following a favorable vote by workers, Volkswagen de México and the Independent Union of Volkswagen Automotive Industry Workers (SITIAVW) have concluded this year’s collective bargaining agreement review.

In a vote organized by SITIAVW, workers ratified an agreement comprising three main components: a 4.4% direct wage increase, a 0.25% increase in the savings fund, and a one-time payment of US$643. Together, these components represent an overall increase of 8.24% over a 12-month period.

The agreement concludes negotiations that began in mid-August with the filing of a strike notice, followed by subsequent extensions. During the process, union members rejected two previous proposals in separate votes: the first, in September, offered a 10.04% increase over 18 months, while the second, in early October, proposed a 13.16% increase over 24 months.

The conclusion of the negotiations marks the end of a challenging period for the Volkswagen Group, the brand, and its Mexican subsidiary.

The agreement also has significant operational implications for the plant, as it paves the way for mass production of the new Golf, a strategic project for Mexico. The first four pre-production units were successfully assembled in September.

The ratified agreement, which includes retroactive pay adjustments effective August 2026, signals a commitment to stability, labor peace, and solidarity with the Group’s headquarters in Puebla during one of the most challenging periods in the company’s recent history.

Volkswagen de México thanked all parties for their interest in the process and underscored the importance of its vehicle and component manufacturing operations, which have been running for nearly 70 years and have produced more than 14.5 million vehicles with the work of Mexican employees. The company’s operations are a major source of direct and indirect employment in Puebla and position it among Mexico’s leading automakers.

“As a company, we take this stance with a sense of responsibility, a forward-looking vision, and the confidence that operational excellence, strong results, and labor peace and stability will continue to be the foundation of sustainable growth,” the company said in a press release issued in October.