Volkswagen Mexico Union Workers To Hold New Vote After Rejecting 9% Raise: Reuters

by Shivani Kumaresan, Benzinga Staff Writer

August 16, 2022 7:08 AM | 1 min read |

Volkswagen AG’s VWAGY workers in the Mexico factory are set to hold a new contract vote after rejecting the initial agreement with the management of a 9% raise, Reuters reported.
The initial deal between the company and its Independent Union of Automotive Workers (SITIAVW) failed to gain the approval of its workers.
The report noted that the deal, if approved, would have been the biggest automaker raise in Mexico in recent years, covering about 7,000 people in the state of Puebla.
SITIAVW initially asked for a 15% raise due to surging inflation and settled on a 9% hike.
Mexico's Federal Center for Labor Conciliation and Registration has called for a fresh voting process with a higher turnout.
Price Action: VWAGY shares closed lower by 1.24% at $20.13 on Monday.
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