Volkswagen Mexico awards two-year pay deal to 10,000 staff


Car manufacturer Volkswagen has awarded a two-year pay deal to 10,000 blue-collar employees based at its Mexico operating site who are members of the SITIAVW trade union.

The pay deal, which is effective from 18 August 2018, is the result of the annual salary and contract review process conducted between Volkswagen Mexico and the SITIAVW. Negotiations began on 27 July 2018 and the agreement was reached on 18 August 2018.

The offer includes a pay increase of 5.5% in 2018, as well as a 1% contribution from employees’ salaries into the organisation’s saving fund initiative, in which a percentage of salary is put into the savings fund, earns interest and is then given back to employees at the end of the year.

For 2019, employees will receive a pay increase based on the rate of inflation, a 1% pay rise direct to salary and a further 1% contribution to the saving fund scheme.

Consuelo Minutti, head of corporate communications at Volkswagen Mexico, said: “This increase is the [highest] in [the] Volkswagen Mexico story and the second [highest] in the automotive industry in Mexico this year.”