[REVISION HISTORY]

Volkswagen Mexico workers reject wage agreement

Updated 25 times since CLSTR started tracking revisions of this situation.

What changed

2026-10-25 02:10 UTC → 2026-10-26 02:56 UTC · added ~~removed~~

Labor negotiations between Volkswagen de México and the Independent Union of Automotive Industry Workers at Volkswagen (SITIAVW) have reached a critical impasse. Following multiple formal salary and contract review consultations, workers at the Cuautlancingo, Puebla, facility have repeatedly rejected proposed agreements. In ~~September 2026,~~ mid-October, workers rejected a ~~10.04~~ proposal for a 13.16 percent global increase ~~spread~~ in salaries and benefits over ~~18 months, with 67~~ 24 months. The vote, held on October 15, saw 56.1 percent of ~~members voting against~~ valid votes—totaling 3,135 workers—reject the deal. ~~This rejection followed layoffs at the facility, where approximately 800 workers lost their jobs after the company eliminated one of three shifts for Jetta and Tiguan production.~~ Volkswagen ~~attributed its financial constraints to intense competition from Asian manufacturers and lower production levels, while~~ expressed disappointment, stating the ~~union argued~~ proposal represented the ~~increases failed to account for inflation. In early October, a preliminary agreement was proposed that included a 3.80 percent direct salary increase for 2026, with~~ ‘mayor esfuerzo viable’ (greatest viable effort) amid economic challenges. The company warned it would not avoid a ~~total integral increase of 9.41 percent, alongside~~ strike if costs jeopardized the ~~reinstatement~~ future of ~~611 terminated technicians. However, a~~ the plant. A subsequent third ~~preliminary agreement was reached to avoid a strike. This proposal includes~~ proposal, involving a global increase of 8.24 ~~percent, consisting of~~ percent (comprising a 4.4 percent direct salary ~~increase,~~ raise and a 0.25 percent increase to the savings ~~fund,~~ fund) and a one-time payment of 12,000 ~~pesos. Unlike previous offers that sought to lock in wages~~ pesos for ~~18 to 24 months, this agreement has a 12-month validity. The workforce is~~ 7,048 technicians, was scheduled to for a vote on ~~this~~ October 28. This package by includes benefits retroactive to August 18, 2026, with a ~~deadline of October 29 at 11:00 AM.~~ 12-month validity. Volkswagen has indicated it ~~does~~ will not ~~intend to enter a fourth round~~ present further economic offers, making this the final stage of ~~negotiations, emphasizing that~~ negotiations. If the majority of workers reject this is package, a ~~definitive proposal within the pre-strike period.~~ strike is scheduled to begin on October 29 at 11:00 AM.

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