Mexican Workers Threaten Strike, Win 23% Raise from Volkswagen

08/21/96

Reuters reported that Mexico's Labor Ministry announced that Volkswagen de Mexico agreed to raise workers salaries by 23% and to 3% in contributions for its unionized workforce.

"Thanks to this agreement, the 9,600 unionized workers benefit from a direct salary increase of 23 percent, plus three points more in contribution terms," the ministry said.

Volkswagen agreed to the new wage hike in order to avoid a strike that had been scheduled for August 18. The ministry gave no details about when the increases would take effect.

Paul Dever -- The Auto Channel