Audi Mexico Working to Prevent Strike

Audi’s Mexico union has set Jan. 1 as the deadline to reach an agreement over pay raises before a strike is presented. The union and Audi had previously presented two options for wage increases for the plant's 4,000 unionized employees in Puebla, but both were rejected by the workers. The Independent Union of Audi Mexico Workers (SITAUDI)and Audi are now engaged in further negotiations.

SITAUDI and the automaker are now engaged in further negotiations. The first deal offered a 8.4 percent salary increase in 2023, while the second deal proposed a 9.4 percent increase next year, along with annual increases until 2026 in line with inflation plus an increase of 1 percent.

Audi Puebla workers felt disappointed by the two offered deals, according to Cesar Orta, Leader, SITAUDI. Orta highlighted that he respected the decision to reject both offers, "They voted 'no' and that is respectable. Union democracy was exercised and we respected the voice of the majority," he said, according to Reuters. The German automaker is working with SITAUDI in reaching an agreement that benefits both parties, as it is a priority for the company to prevent workers from going on strike. 

In November of this year, SITAUDI requested an 18 percent wage increase, leading the National Chamber of Transformation Industry (CANACINTRA) to label the action as “irrational.” The organization emphasized that the current economic situation has not helped the automotive industry to return to pre pandemic levels. Luis Espinosa Rueda, President, CANACINTRA, highlighted that it is important to ensure reliability to investors, especially since Puebla plays a critical role in the sector, as reported by MBN.
Key players agree that both parties need to collaborate to find a solution that satisfies both parties. Puebla Governor Miguel Barbosa said that he is confident that if workers and the company understand the current industry situation, the result of the negotiations will be positive for all.

This year, workers at Volkswagen’s assembly plant in Puebla accepted, after two iterations, the 9 percent direct salary increase and 2 percent increase in benefits brokered by the automaker company and the Independent Union of Automotive Workers (SITIAVW). This is the highest salary increase ever achieved in Mexico’s automotive industry, as reported by MBN.

"We congratulate the decision of the majority of Volkswagen Puebla workers, for approving the contractual review agreement that represents improvements in their salary and benefits and avoids a strike," wrote Luisa Alcalde, Minister of Labor.