VW Mexico Wage Talks Start; Union Seeks 14% Raise

Volkswagen de México and the Independent Union of Workers of the Automotive Industry Volkswagen de México (SITIAVW) have begun formal wage negotiations for 2025, with one week remaining before a potential strike at the company’s Puebla plant. The union is seeking a 14% direct salary increase.

Negotiation officially started on July 18, when SITIAVW submitted its request to Volkswagen management. Talks were delayed until Aug. 11, partly due to a production pause at the Cuautlancingo facility from July 20 to Aug. 2, which allowed the company to restore safety stock levels and maintain production continuity.

The union has prepared for a possible strike by organizing members to act as gate supervisors and secure plant access if an agreement is not reached. Union representatives said these measures are standard procedure during labor negotiations and do not necessarily indicate a strike.

If no deal is reached by 11 a.m. on Aug. 18, production of the Jetta, Taos and Tiguan models will stop. The negotiation table was installed this week in Puebla. Sources told Multimedios that discussions could move to the Federal Center for Conciliation and Labor Registration (CFCRL) in Mexico City in the coming days. The current wage demand is more than five times the 2.77% inflation rate registered in Puebla in July.

Business organizations are urging both sides to prioritize dialogue. “We always call on both the labor and employer sectors to prioritize dialogue. Today is not the time to fight, create tension, or polarize. Employers and workers form a partnership,” said Beatriz Camacho, President of the Employers’ Confederation of the Mexican Republic (COPARMEX) in Puebla.

Camacho added that maintaining labor stability and ensuring the company’s long-term viability are key objectives. “We are confident there will be dialogue and that the issue at Volkswagen will be resolved without complications,” she said.

The state government will act as an observer in the negotiations. “We invite both parties to reach a settlement for the good of the company, the workers, and Puebla. Conciliation in all areas is essential, and the worker should be the main beneficiary,” said Víctor Chedraui, head of Puebla’s Ministry of Economic Development and Labor.