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VW Seeks Strike Ruling From Mexican Court

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Bloomberg News

Volkswagen filed a petition in Mexico seeking a ruling that would declare a 5-day-old strike illegal, a move that forced the two sides to break off negotiations. Volkswagen management said in a petition filed Monday that the workers’ union didn’t hand in the proper documentation to justify a strike and that workers abandoned their posts before the strike was scheduled to start. If the court rules in favor of the union or if it postpones its decision, the union, which represents about 12,700 workers, said it would be willing to resume negotiations. A court ruling against the union would leave workers with no alternative but to return to work in 24 hours. The union and Volkswagen have failed for five days to breach their differences over wage increases. The union says it won’t accept a wage increase of anything less than 20%. The strike has paralyzed Volkswagen’s plant in Puebla, about 60 miles east of Mexico City. The plant, which this year is expected to produce more than 430,000 units, is the company’s sole maker of the redesigned Beetle model.

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