Audi Mexico Workers Reject 7% Pay Increase, Strike Continues

The strike at Audi's San Jose Chiapa plant in Puebla remains ongoing as workers stand firm against the proposed 7% salary increase. They have rejected the company's offer of a 5% direct wage hike and 2% increase in benefits. The Independent Union of Audi Workers in Mexico (SITAUDI) is pushing for a 10% salary raise and a 5.5% boost in benefits, with 83.1% of eligible workers rejecting the initial proposal. 

The strike, which began on Jan. 24, is seen as a significant moment for Mexican unionism, drawing parallels to the successful United Auto Workers strike in the United States last year, which led to a 25% wage increase for workers at major automakers.

Underpinned by the 2019 Labor Reform, this movement seeks to bolster unions in Mexico by empowering workers to select their representatives and negotiate annual salary increases through Collective Bargaining Agreements. The ongoing strike is affecting the production of over 700 vehicles daily, including the export-focused Q5 model.

Despite the considerable impact on production, Audi has refrained from disclosing the exact financial losses, which are estimated to be as high as MX$10 billion. The Q5, manufactured in Puebla, is distributed globally, except in China, where it is also produced for the domestic market.

SITAUDI's leader César Orta said that the workers are prepared to hold out for as long as necessary and has urged Audi Mexico to re-engage in negotiations, stressing that there are no grounds for retaliatory actions against the union.