Talks to end a strike at the Volkswagen plant in Mexico were suspended indefinitely on Sunday, quashing hopes of restarting production by the start of this week.
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“The objective to lift the strike over the weekend was not fulfilled, but the will to resolve it continues,” union leader Jose Luis Rodriguez told Reuters.
About 9,700 union workers at Volkswagen’s Puebla plant, east of Mexico City, went on strike on Friday after the company rejected their demand for an 8.5% salary hike.
Talks mediated by the Labor Ministry were suspended early on Sunday without a new date being set, the union told the news agency.
The union had said earlier it would accept a pay rise of about 5.5%, above the company’s offer of a 4.0% direct salary increase, plus 0.5% added to benefits.
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By GlobalDataThe plant operates 24 hours a day from Monday to Friday and has a daily production of 1,450 units, including 350 New Beetles and Jetta models.
The plant produced about 300,000 autos in 2005 and plans 350,000 units this year as Mexico’s exports to the United States have surged, Reuters said.
Two years ago, union workers staged a four-day strike that ended with a 4.5% wage increase, plus benefits. Another strike in 2001 lasted 18 days before the two sides reached agreement, the report added.
