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Volkswagen Says Labor Agreement Reached With Workers in Mexico

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Omaha Steve Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Aug-23-09 01:12 PM
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Volkswagen Says Labor Agreement Reached With Workers in Mexico

By Jens Erik Gould

Aug. 22 (Bloomberg) -- Volkswagen AG, Europes largest carmaker, reached an agreement with a workers union at its Puebla, Mexico, plant to end a strike that began Aug. 18, the company said in a statement.

More than 9,000 workers will receive a 3 percent increase in their pay and a one-time payment of 2,000 pesos ($155), the Labor Ministry said in a statement.

Due to the results of this revision, Volkswagens labor costs in Puebla continue to rise, while the rest of the auto industry in Mexico hasnt given salary increases this year, the company said in the statement. This will force the company to reinforce measures to improve its production levels.

The statement doesnt say how long the contract is for and a Labor Ministry spokesman didnt immediately know. Attempts to reach the union were unsuccessful.

FULL story at link.

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