Volkswagen Mexico faces potential strike as union rejects wage offer

Workers at the Volkswagen plant in Cuautlancingo, Puebla, are facing a potential strike if a new agreement is not reached with the company by October 2. The SITIAVW union recently reported that a majority of the workforce rejected a proposed 10.04 percent global increase, which consisted of a 4.30 percent direct salary raise and a 5.74 percent increase in benefits.

The rejection follows recent layoffs at the facility, where approximately 800 workers lost their jobs after the company eliminated one of three shifts in a segment producing the Jetta and Tiguan models. Union representatives characterized the vote as an expression of indignation regarding these job cuts.

Volkswagen has attributed its financial constraints to intense competition from Asian manufacturers, lower production levels, and broader commercial pressures within the automotive industry. Negotiations are ongoing as both parties attempt to find a viable proposal before the deadline to avoid a suspension of activities at the plant, which is Volkswagen’s largest installation outside of Germany.