Mexico VW workers threaten strike as contract ends

MEXICO CITY, Aug 17 (BestGrowthStock) – Workers for Volkswagen AG
in Mexico are threatening to strike this week if a new labor
contract is not reached by Wednesday.

A one-year contract expires Wednesday morning and workers
at the factory in Puebla want a pay raise of roughly 7.6
percent, the union said, which would outpace the current
inflation rate of 3.64 percent.

Volkswagen (VOWG.DE: ) management and union negotiators were
trying to hash out a deal through direct talks in Mexico City,
a company spokeswoman said on Tuesday.

“The contract expires tomorrow if there is not a new deal,”
said Consuelo Minutti, the Volkswagen spokesman. “We are
producing 1,800 cars a day so, of course, it would be a
disruption.”

The Puebla facility, located just outside of Mexico City,
is Volkswagen’s only North American plant and the largest in
the Americas. It is also one of the company’s largest factories
worldwide.

Labor disputes at the Volkswagen plant are not uncommon.
Last year, the union staged a four-day walkout before signing a
new labor contract.

Volkswagen is one of Mexico’s top automakers, sending most
of its cars to the United States, Canada and Europe.

Mexico’s auto industry has rebounded strongly from the
crippling recession of last year, though July production rose
at a slower rate than the prior month’s blistering growth as
the U.S. economy has recently weakened.
(Reporting by Patrick Rucker and Julio Martinez in Puebla;
Editing by Leslie Adler)

Mexico VW workers threaten strike as contract ends