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VW Workers in Puebla, Mexico Threaten Strike
02:41 a.m. EDT, August 20, 2007

Unless wage talks with management produce results favorable to union workers, officials at the Volkswagen AG assembly plant in Puebla, Mexico plan to call a Saturday morning strike.

In a news bulletin issued by the Independent Union of Volkswagen Workers, the group indicated it is seeking an 8.3 percent wage increase but has been offered only 2.5 percent.

The plant located in Puebla manufactures Jetta A4s, Jetta A5s, station wagons in the Golf/Bora/Jetta lines, and New Beetles for both the Mexican and global markets.

The company has set a goal of 400,000 light vehicles coming out of the plant this year, a sizable increase from the 347,000 produced last year.

Negotiations are in their sixth day and a spokesman for the union, Miguel Angel Galan, told Automotive News, "We believe the company is willing to reach an agreement with us, especially as this is a very important year."

Currently the 10,264 hourly workers at the plant earn on average about $28.25 US a day with an additional $9.71 US as benefits for such items as food vouchers and transportation.

Puebla has seen a history of labor issues dating back several years. As recently as a year ago, operations at the facility were shut down for five days in a union action that led the company to offer workers a wage increase of 4 percent plus increased benefits of 1.5 percent.

Recently, in keeping with the terms of an annual bonus program, VW distributed approximately $15.8 million US among the workers with the average payout valued at $1,200 per worker.

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