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Union threatens strike at VW plant

08/17/2007, 10:23 AM

By Drew Johnson

Union officials at Volkswagen’s assembly plant in Puebla, Mexico, say they will call a strike Saturday morning if management does not produce a satisfactory wage agreement. The Independent Union of Volkswagen Workers is asking for an 8.3% wage increase while VW has only offered an increase of 2.5%.

The Puebla plant has a history of labor issues. Just last August, a strike over wages caused the plant to halt production for 5 days. The strike was resolved after the union accepted VW’s offer of a 4% wage increase plus a 1.5% gain in perks, such as grocery vouchers.

According to Automotive News, the average wage for hourly workers at the plant is $320 pesos ($28.25 dollars) per day, plus $110 pesos ($9.71 dollars) in benefits such as transportation and food vouchers. The plant, which employs 10,264 hourly workers, produces Jetta A5s, Jetta A4s, New Beetles and Golf/Bora/Jetta station wagons for Mexico and world markets and is planning to produce 400,000 vehicles this year.

The possible strike only adds to VW’s current struggles in North America. According to the Detroit Free Press, Volkswagen’s North America unit has lost about $4 billion over the past four years. But Volkswagen of America executive vice president, Adrian Hallmark, says VW is committed to the U.S. market and plans on selling 500,000 vehicles annually within the next 5 years. Hallmark is also pushing for a new North American plant.

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08/17, 10:41 AM

posted by:

CTS DRIVER

welcome to the same problem the domestics have vw.
jetta a4 jetta a5?

08/17, 11:50 AM

posted by:

A4

jetta A4 is the last generation, and the jetta A5 is the current generation. The previous generation is still sold in many markets as a cheaper model.
LLN says VW is struggling but they also just posted an article saying theyve had record sales in North America.. make up your mind.

08/17, 11:51 AM

posted by:

A4

(MKIV, MKV, if that helps.)

08/17, 1:09 PM

posted by:

CTS DRIVER

hell yeah it helps, that makes sense it was unclear i know the cars dont share platforms, and yeah this does contradict the record sales article.

08/17, 1:56 PM

posted by:

Fletch

Over 10,000 hourly workers for 400,000 vehicles/year!?! This must be an incredibly labor intensive plant. Shame on VW.

08/17, 4:20 PM

posted by:

Commodore

I wish the title was “Union threatens strike at a plant”. Then Toyota would really get an idea of what those are like (since their main competitor, GM, has had to deal with them but of course Toy has managed to avoid them. And trust me, they didn’t avoid them by paying their workers lots of money and giving them free health and other benefits).

08/17, 6:26 PM

posted by:

swamprat

I’m on the side of the union there. I have less sympathy in the US. Working and living conditions are horrible in Mexico. People who work at foreign factories in that country live in cardboard huts that surround the plants. For those self righteous punks who would buy a car made with virtual slave labor and those who say that we should try and compete with slave wages, may you be the first to feel the effects of an economic crash.

08/17, 11:18 PM

posted by:

Hal

This doesn’t contradict the record sales article. Worldwide sales are at record level but VAG is struggling in North America because the dollar is weak vs the euro – making stuff imported from Europe more expensive, including parts for the cars built in Mexico. VAG needs quit dicking around in Mexico and build at least one car plant in the USA if they are serious about the North American market.

08/18, 1:36 AM

posted by:

Commodore

swamprat – slave wages and cheap labor and working for foreign companies? Are you talking about China?

08/18, 9:15 AM

posted by:

A4

yeah im aware the dollar is weak against the euro but VW, nor any other company can do jack to alter that, so if theyve hit record sales, the word struggling should not be connected to the brand, no matter how little of a profit they make per car. And yes, if they are serious about the US market, they need a plant here.

08/18, 10:24 PM

posted by:

deutschetouring1337

The records sales is just some bookkeeping stunt that either they bought back shares or freed up equity from somewhere else to boost profit numbers. Common business practice but its all bs.

08/19, 12:56 PM

posted by:

Scarface03

I’m not sure why VW would need a U.S. plant to be serious about U.S. sales. Most domestic branded cars are built outside the U.S., just ask Canadian autoworkers. VAG must be running North America ops really lean to be bent out of shape over an 8.3% vs. 2.5% increase. Just think of the numbers. VW is willing to pay its workers $399,000 a day, but the workers want $422,000 a day. $23k a day is not chump change, but think how much more expensive it would be to pay 10,000 UAW workers 5.8% more pay. With benefits, the Mexican workers are asking for $41.11 per day–there are probably many UAW workers making that per HOUR, including benefits.

08/19, 4:18 PM

posted by:

BLISS

THEY NEED MORE INCENTIVE VOLKSWAGEN AG….AH AHHH!!

08/20, 12:32 PM

posted by:

Piablo

The funny thing is, even if they cave to the union demands of extortion, the quality of those Jettas will still be dirt poor. One of the worst cars on the road today.

 
 
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