Volkswagen de Mexico expects to offer a wage increase to unionised hourly workers at its assembly complex in Puebla over the next 24 hours, it said in a statement late on August 15, writes Stephen Downer.

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The announcement followed three days of talks between company negotiators and representatives of the Independent Union of Volkswagen Workers (SITIAVW) during the annual contractual review.

The union has called a meeting of its members for next Saturday, the eve of the start of last year’s strike over money that paralysed the complex for 19 days.

The union, which represents three quarters of about 16,000 employees at the complex, had held out for a wage increase of 19% before accepting 10.2%.

But, according to Francisco Bada, a company vice-president, the deal satisfied neither side because the union had failed to get what it wanted while Volkswagen de Mexico had been forced into a wage settlement that was three times Mexico’s annual inflation rate.

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As a result, “the company’s relationship with the union is very bad,” Bada said at the time.

This week’s talks had concentrated on “analysing different ways of improving the company’s competitive situation,” according to the Volkswagen de Mexico statement.

The complex, 60 miles east of Mexico City, is the sole assembler of the New Beetle. Among other vehicles built there are the VW Jetta (Bora) and Sedan (the old rear-engined Beetle).

Last year Volkswagen assembled 295,600 vehicles for export and 85,090 for the domestic market at the complex.