Workers at the Mexico unit of Volkswagen agreed on Sunday to a salary increase of 5.25% and avoided a Monday strike, days after accepting a shorter work week to save 2,000 jobs, Reuters said.
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The 9,800 unionised workers had planned to strike on Monday if an agreement were not reached, the report added.
“The proposal accepted by the members is for a 5.25% (increase) directly in salary,” union chief Jose Luis Rodriguez told Reuters, adding the increase will also apply to some benefits – the union had sought a salary increase of 13.6%.
According to the news agency, Volkswagen’s plant in central Puebla state saw production drop 11.2% from January to July amid lower demand for export models, due largely to the economic slowdown in the United States, Mexico’s main trading partner.
In June, Reuters added, the company said it would reduce production by 23%, meaning 2,000 layoffs, but workers last week agreed to a four-day working week including pay reductions to save the jobs.
