VW Workers in Mexico Get 19.9% Pay Hike

Germany’s Volkswagen, the largest auto maker and exporter in Mexico, said it granted its unionized workers in Mexico a 19.9% pay increase, apparently averting a strike at the world’s only plant making the popular New Beetle. The 12,750 unionized workers had sought a raise of 40% in its annual pay review before three days of negotiations produced the accord, the company said. Union representatives were unavailable for comment. Volkswagen has 16,000 employees in Mexico, virtually all of them at its Puebla plant, about 60 miles east of Mexico City. It is the only factory in the world to make either the New Beetle or the old Beetle model, which is still the most common car on the streets of Mexico City.

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