Volkswagen and Mexican union reach preliminary wage agreement

Volkswagen de México and the Independent Union of Automotive Industry Workers (SITIAVW) have reached a third preliminary agreement to avoid a strike at the company's plant in Puebla. The deal follows previous rejected proposals and aims to resolve the integral review of the 2026 Collective Labor Agreement.

The proposed package includes a global increase of 8.24%, consisting of a 4.4% direct salary increase, a 0.25% increase to the savings fund, and a one-time payment of 12,000 pesos (representing 3.59% of the total). Unlike previous offers that sought to lock in wages for 18 to 24 months, this agreement has a 12-month validity, allowing for future reviews.

The agreement must now be put to a vote by the unionized workforce. A deadline has been set for October 29 at 11:00 AM for the workers to decide. Volkswagen has indicated that it does not intend to enter a fourth round of negotiations, emphasizing that this is a definitive proposal within the pre-strike period.