Overview

• The 4% direct salary increase takes effect on August 18 and includes a 1% contribution to employees’ savings funds at the Cuautlancingo plant.
• The agreement falls short of the union’s 14% wage demand and continues a pattern of annual settlements that prevented strikes with 9% and 8.1% hikes in 2022 and 2023.
• Negotiations moved from Puebla to the Federal Labor Tribunal and the Centro Federal de Conciliación y Registro Laboral in Mexico City after local talks reached an impasse.
• Ricardo Guerrero, Volkswagen de México’s HR vice president, said the result reflects the company’s commitment to open dialogue and employee welfare.
• The settlement preserves workers’ purchasing power above inflation during a period of broader challenges for the global auto industry.