Volkswagen’s Mexico factory workers reject union pay deal

Volkswagen's Mexico factory workers reject union pay deal
© Reuters. The logo of Volkswagen is displayed at the Mexico’s factory during a new vote to ask workers if they approve of a recently negotiated deal with the management, in Puebla, Mexico August 31, 2022. REUTERS/Imelda Medina

MEXICO CITY (Reuters) – Workers at Volkswagen (ETR:VOWG_p)’s Mexico factory on Wednesday rejected a deal for a 9% pay hike, according to an official statement, voting for a second time against what would have become the country’s largest automaker raise in recent years.

The union for workers at the plant in Puebla, in central Mexico, had initially sought a raise of more than 15% to account for soaring inflation, from salaries that range from $15 to $48 per day.

About 3,450 workers had voted against the deal, compared with 3,225 in favor, Mexico’s Federal Labor Center said in a statement.

Source: Reuters