Audi Mexico Union Requests 18 Percent Wage Increase

The Independent Union of Audi Workers of Mexico (SITAUDI) requested an 18 percent wage increase for the Audi Puebla staff, leading the National Chamber of the Transformation Industry (CANACINTRA) to deem the demand as “irrational.” This wage increase would significantly surpass Volkswagen’s recent 11 percent raise reported by MBN. A consensus was reached after two similar proposals were discarded, with the new deal being approved with 63 percent of votes in favor.

CANACINTRA invited the automaker workers to reflect on their request, as the current economic situation does not favor the automotive industry due to the constant supply chain problems and rising inflation levels that have not allowed the sector to recover as expected. Luis Espinosa Rueda, President, CANACINTRA, remarked that Puebla plays an important role for the industry, so it is necessary to send reliable messages to potential investors, according to El Economista. 

Luis Espinosa recalled that the deal obtained by Volkswagen Mexico workers in Puebla was risky because it took three iterations for the employees to agree to the proposals previously negotiated between the company and its union representation. CANACINTRA highlighted that the union has not justified its request for an 18 percent wage increase, which means it is necessary for both parties to work together to reach an agreement as soon as possible. 

Puebla Governor Miguel Barbosa also called on SITAUDI to reanalyze its request, as he thinks that it is necessary to reach an agreement. However, he is confident that if all parties involved have a clear understanding of the economic situation and the role of the federal labor authority, the negotiations will yield good results for all. 

The union and the company will work through diverse proposals under the transitory clause of their Collective Labor Agreement (CCA). The CCA states that wage or benefit conditions can be negotiated if for the three consecutive quarters of the calendar year, the inflationary index increases by 6 percent, according to Milenio. 

The negotiation will take place at the Federal Center for Labor Conciliation and Registration (CFCRL) in Mexico City and the results of the bargain will affect the nearly 4,000 employees of the Audi assembly plant in Puebla. If no agreement is reached, production of the Audi Q5 truck will be interrupted after the deadline for the negotiation, on Nov. 16, 2022.