Volkswagen Mexico, SITIAVW Agree on 4% Wage Hike for 2025

Volkswagen de México and the Independent Union of Volkswagen Automotive Industry Workers (SITIAVW) have reached an agreement for a 4% direct wage increase for 2025, concluding negotiations that had raised the possibility of a strike at the Puebla plant.

The union initially demanded a 14% increase, creating tension during the wage review process. With the legal deadline set for 11 a.m. on Aug. 18, failure to reach an agreement would have triggered a strike, halting production at one of Mexico’s largest automotive assembly plants and disrupting the company’s supplier network.

“Open dialogue and mutual respect are fundamental pillars for building agreements that benefit all parties. This result reflects our commitment to a business strategy focused on people and their well-being,” said Ricardo Guerrero, Executive Vice President of Human Resources and Organization, Volkswagen de México.

Volkswagen emphasized that the 4% raise is above inflation levels and seeks to safeguard workers’ purchasing power. Both the company and SITIAVW underscored that the outcome resulted from a series of meetings between their review committees, which analyzed the current challenges of the global automotive industry and their impact on Volkswagen Group and its Mexican subsidiary.

Preventive measures were implemented by both sides in the days leading up to the deadline to prepare for a potential production stoppage. However, the final agreement avoided disruptions and reinforced the long-standing framework of labor stability at the plant.

Volkswagen acknowledged the role of labor authorities and conciliators in facilitating negotiations. “Their participation contributed to creating an environment of understanding and collaboration,” the company said in its statement.