Volkswagen Mexico union to hold new contract vote after workers reject deal


Volkswagen Tiguan cars are pictured on a production line at the company’s assembly plant in Puebla, Mexico July 10, 2019. REUTERS/Imelda Medina

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MEXICO CITY, Aug 15 (Reuters) – Workers at Mexico’s main Volkswagen plant (VOWG_p.DE) will be asked to vote again on whether to approve their union’s deal with management for 9% raises after initially rejected the deal, the union said on Monday. .

The plant’s Independent Automobile Workers’ Union (SITIAVW) has reached an agreement with the company for what would have been the biggest increase for automakers in Mexico in recent years, covering some 7,000 people in the Central state of Puebla, but the plan failed to pass a worker’s agreement. vote required for approval. Read more

SITIAVW, one of Mexico’s strongest independent unions, initially demanded a raise of more than 15%, citing inflation. Last year he negotiated a 5.5% raise with Volkswagen and in July agreed to a 9% hike for the next one-year pay cycle.

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Union wages at the Puebla plant range from about $15 to $48 a day.

Mexico’s Federal Center for Labor Conciliation and Registration has asked the union to redo the vote to ensure higher turnout, SITIAVW said in a statement.

In the initial vote on Aug. 5, about 70% of eligible workers voted, the Federal Center said. The “No” advanced by 338 ballots.

SITIAVW said in a statement that it had not yet set a date for the new vote but would repeat the entire process, including the distribution of the recently negotiated contract for the Puebla plant, where Volkswagen manufactures the Jetta, Taos and Tiguan.

Volkswagen said it hopes the new vote will represent all unionized workers. The company said last week it was engaging in “constructive dialogue” with the union after the rejection.

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Reporting by Daina Beth Solomon; Written by Kylie Madry; Editing by Anthony Esposito, Aurora Ellis and Richard Chang

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