Volkswagen Mexico is giving over 14,000 employees a 6.5% pay rise, following on from an agreement with union party Volkswagen Automotive Industry Workers of Mexico (Sitiavw).
The agreement announced this week, will give employees a 5.5% pay rise directly to their basic salary, and a 1% salary to their savings funds.
The deal was agreed on just hours before a strike was scheduled, at 11am on 18 August 2020. This pay rise is in addition to the 4% pay rise employees received in 2016, a 6.5% pay rise that Volkswagen Mexico employees received in 2018, and the 5% increase that employees received in 2019.
The pay rise was agreed to match and exceed the standard inflation pay increase that employees regularly receive, currently standing at 1% basic salary, and 1% in their saving funds.
Manuel Aburto, a spokesman at Sitiavw said: "After 14 days of intense negotiations with the Volkswagen Company of Mexico, the Sitiavw 2018 Review Commission achieved historic results in terms of the Collective Bargaining Agreement and pay increase."
