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Volkswagen Increases Pay and Benefits in Mexico

070824_vw-mexico.jpgAfter the averted weekend strike of employees over wages, the Mexican unit of German automaker Volkswagen AG agreed to a pay rise with its 11,000 unionised workers. Volkswagen’s plant in Mexico is the world’s only producer of Volkswagen’s New Beetle model. Jose Luis Rodriguez, union leader, said that workers won a 5.5 per cent increase in pay and benefits, lower than their 8.3 per cent demand but above an initial company offer of 2.5 per cent. “We were able to increase (the company’s) first salary proposal,” Rodriguez told a news conference after late-night talks in the Labor Ministry in the Mexican capital. According to Automotive News, the average wage for hourly workers at the plant is $28.25 per day, plus another $9.71 benefit for transportation and food vouchers. The plant, which employs 10,264 hourly workers, produces Jetta A5s, Jetta A4s, New Beetles and Golf/Bora/Jetta station wagons for Mexico and world markets. The Volkswagen plant in the central Mexican state of Puebla, 75 miles (120 km) east of Mexico City, exports mainly to the United States and Europe. It is Volkswagen’s only plant in North America. This year, the plant has a target output of 400,000 vehicles compared to production of 347,020 in 2006, when the company went through a six-day pay strike. Image source: dw-world.de. > Continue.

News selected by Covalence | Country: Mexico | Company: Volkswagen | Source: Volkswagen Blog

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