Volkswagen de México faces potential strike as wage talks stall

Negotiations between Volkswagen de México and the Independent Union of Automotive Industry Workers of Volkswagen de México (Sitiavw) have reached a stalemate as a strike deadline approaches. The deadline for a resolution is set for Wednesday, August 26, at 11:00 AM.

Volkswagen has reportedly increased its global increase proposal from 7.95% to 9%. This offer includes a 4% direct salary increase, with the remainder distributed among benefits and other categories. Some reports suggest a breakdown involving a 2.45% annual one-time payment, a 1% increase to the savings fund, and a 0.8% adjustment for vacation clauses.

The union has expressed rejection of these terms. Sitiavw is seeking a significantly higher global increase, with demands ranging between 11.63% and 18%, including specific requests for direct salary hikes of 5.5% to 13%. If a consensus is not reached by the deadline, workers are prepared to initiate a strike at the Cuautlancingo plant, marked by the placement of red and black flags at the facility entrances.