Volkswagen agrees to 5.5% salary hike for its workers in Mexico

The agreement, which took 2 weeks to negotiate averted a potential strike at one of its biggest plant in Mexico’s central city of Puebla.

On Monday, EU’s biggest carmaker Volkswagen AG stated, it has agreed to a 5.5% increase in salary hike of its workers in Mexico as well as another raise in 2019, in a deal aimed at averting a potential strike.

As a result of the deal, workers will not only benefit from a wage rise but they will also see a 1% increase in their savings fund as well as the indexation of food allowance vouchers, said the independent union of Volkswagen workers (SITIAVW).

The statement also said, VW has agreed with representatives of its labor union for a raise equivalent to inflation plus 2% for 2019. This amounts to a 1% salary hike and a 1% hike in savings fund and food vouchers, said its union.

According to SITIAVW, the agreement came after two weeks of negotiations.

Volkswagen’s operations in Mexico are based in the central city of Puebla, where it has one of its biggest plants.

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