The Mexican unit of Volkswagen AG confirmed this Wednesday, August 18, that it has agreed with the workers’ union a salary increase of 5.5 percent.
The agreement with the Volkswagen Independent Union of Automotive Workers It also includes a 1% percent increase in workers’ savings funds, according to a company statement published by Reuters.
The agreement was reached in “a challenging environment, where the automotive industry struggles to maintain its recovery after more than a year of the coronavirus pandemic, and in the face of semiconductor (chip) shortages,” Volkswagen said in the statement.
Volkswagen is one of several automakers, as well as General Motors, Ford Motor and Toyota Motor, that were forced to cut production in 2021 due to a shortage of semiconductor chips.
The lack of supplies was caused by factors ranging from an increase in demand for electronic devices during the pandemic, to transportation problems.
This is delaying the recovery in the automotive markets after the toughest stage of the covid-19 pandemic.
According to the statement, the agreement was resolved through “dialogue and openness” between the parties, which had “the accompaniment and mediation of officials from the Ministry of Labor and Social Welfare.”
The VP of Human Resources of VW de México, Kai Linnenkohl, said that the challenges that existed were understood and an agreement was reached “that protects the purchasing power of the personnel, on the one hand, and gives financial sustainability to the company, on the one hand. other”.
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The manager also highlighted that the agreement “sends a signal of job stability that allows our plant in Puebla to continue to be a key part of the Volkswagen Group’s strategy.”
Volkswagen’s Mexico subsidiary generates about 10 percent of the country’s auto sector jobs.