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VW Mexico strike ends; workers get 3% raise

VW Mexico strike ends; workers get 3% raise

Posted Monday, Aug 24, 2009, 11:41 am in Employee News

Management representatives from Volkswagen AG’s Mexican subsidiary agreed on Saturday to give workers a small raise, clearing the way to end a strike that has disrupted shipments of Jetta and New Beetle vehicles to the United States, the Automotive News reported.

Union members, on strike since last Tuesday, will return to work later on Saturday, union official Victor Jaime Cervantes told the media. Volkswagen said in a press release it agreed to give workers a 3 percent raise and a one-time cash payment, 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, the Automotive News said. Mexico’s auto output fell 25 percent in July from a year earlier, the story said. (Automotive News)

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