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Pay Hike Averts VW Strike in Mexico

Volkswagen AG has sidestepped a strike at its giant assembly complex in Puebla, Mexico, with a pay hike and richer benefits, Reuters reports.
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Volkswagen AG has sidestepped a strike at its giant assembly complex in Puebla, Mexico, with a pay hike and richer benefits, Reuters reports.

The plant’s union, SITIAVW, says VW agreed to raise workers 5.5% this year and another 2% plus inflation in 2019. The carmaker also will pay 1% more into a worker saving fund and increase food allowance vouchers.

Last August VW agreed to a one-deal contract that included a 5% pay hike and 1.5% increase in benefits.

The agreement concludes two weeks of negotiations, according to SITIAVW. The Puebla plant makes Beetle coupes, Golf hatchbacks, Jetta sedans, Tiguan Allspace crossover vehicles and Jetta sedans.

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