Audi México Secures 19.5% Wage Increase With Union Deal

Audi México and the Independent Union of Audi México Workers (SITAUDI) have reached a global pre-agreement on the 2026 contract review, establishing a 19.5% total compensation increase. The package is divided into a 4.6% direct wage increase and a 14.9% boost in benefits.

The overall figure closely matches the union’s initial demand for a 20% adjustment, although the structure differs from the original proposal submitted by the workforce of more than 4,000 employees. The union had initially sought a 15% wage increase and a 5% increase in benefits.

The agreement will be submitted to a membership vote on June 23 and June 24 at Audi México’s manufacturing plant in San Jose Chiapa, Puebla. According to SITAUDI General Secretary César Orta, voting will take place inside the facility across multiple shifts, with workers deciding whether to ratify or reject the proposal.

Wage Adjustments and Enhanced Benefits

If approved, the 4.6% wage increase will raise the minimum tabulated daily salary at the plant from MX$381.95 (US$22.04) to MX$399.52 (US$23.05). The maximum tabulated daily wage will increase from MX$1,192.06 (US$68.78) to MX$1,246.89 (US$71.95).

The 14.9% benefits package includes a guaranteed profit-sharing clause with an annual bonus of MX$25,000 (US$1,442.50) per worker. This compares with MX$7,000 distributed in 2024 and MX$5,000 in 2023. Additional adjustments include expanded Christmas voucher benefits and an increase in the Sunday premium for employees working special or rotating shifts, such as maintenance staff. The Sunday premium, currently set at 100% of the daily wage, will rise to 150%.

Audi México will also allocate MX$7 million (US$403,900) to fund employee events and social programs, including an increase in the value of prizes traditionally distributed during December raffles.

The agreement also introduces a structural change to bargaining timelines. Starting in 2027, annual contract negotiations will take place on December 1, aimed at improving operational planning certainty for both the company and the union.

Historical Context and Industrial Performance

Audi has operated in Puebla for a decade. Over that period, plant workers have received a cumulative compensation increase of 60%, compared with inflation of 49% over the same period.

The historical breakdown of wage increases versus inflation is as follows:

The 2026 negotiations take place amid weakening production and export performance at the automaker. As of May 2026, Audi recorded a year-over-year production decline of 14%, while exports fell 23.8%. Output has remained volatile throughout the year.

The San Jose Chiapa plant has also undergone two technical shutdowns in 2026. The first occurred on January 5, involving partial stoppages across production areas and shifts. The second took place from May 29 to June 14 for maintenance and technological upgrades.

Escalation Timeline and Next Steps

The deadline to finalize and ratify the 2026 contract review is June 26. The outcome of the vote will be decisive for operational continuity.

If approved, the agreement will take immediate effect. If rejected, management and union representatives must return to negotiations to draft a revised proposal for a second vote. A second rejection could trigger a strike.

As a preventive measure, SITAUDI has distributed an official strike roster to members outlining procedures in the event negotiations collapse before the deadline. The document establishes a two-shift system for strike duties, with a day shift from 08:00 to 18:00 and a night shift from 20:00 to 06:00.