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Old 08-19-2009, 10:28 AM
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Workers strike at VW’s Mexican plant

Workers strike at VW’s Mexican plant

Posted Wednesday, Aug 19, 2009, 12:20 pm in Employee News

Workers at Volkswagen AG’s Mexican plant went on strike on Tuesday after wage negotiations between the company and the plant’s union broke down, complicating Mexico’s already battered auto sector, Reuters reported.

Workers shouting slogans hung red and black strike banners at the entrances to the factory in the central state of Puebla, the company’s only plant that makes the New Beetle model, the story said. Volkswagen is one of Mexico’s biggest manufacturers and, like the rest of Mexico’s auto industry, its Mexican plant has been hit hard by the U.S. recession. Mexico’s auto output fell 25 percent in July from a year earlier, Reuters service said.

Mexico’s plummeting auto exports have been a leading factor in the country’s recession, with the economy this year expected to contract more than anytime since 1932, the news service said. Volkswagen builds 1,500 cars a day at the plant for both the Mexican market and for export, the story said. (Reuters)
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