Volkswagen de Mexico and union reach early deal, avert strike

Volkswagen de Mexico, Union Agree on 12-Month Deal to Prevent Strike

Key Details of the Volkswagen and Union Agreement

Oct 22 (Reuters) - Volkswagen and the workers' union at its facility in central-eastern Mexico reached an agreement averting a strike scheduled for Thursday.

Agreement Terms and Voting Process

The 12-month agreement revising the collective labor contract remains subject to consultation and will be put to a vote by unionized workers on October 29, the company and the union said in separate statements published late on Wednesday.

Significance of the Puebla Assembly Plant

• The assembly plant in the Mexican state of Puebla is one of Volkswagen's biggest plants and a major export base for North America.

Details of Wage Increases and Benefits

• The deal sets a total increase of 8.24% for its workers, including a 4.4% direct wage rise, a one-time payment and a savings fund, the union specified.

Negotiation Process and Finalization

• The carmaker said it considered this the final step of the dialogue and negotiation process with the Automakers' Union, noting it does not foresee another round of talks.

Role of Government and Labor Authorities

• The latest agreement was reached through conciliation talks supported by the labor ministry and the Federal Center for Conciliation and Labor Registration, the ministry said in a separate statement.

Previous Rejected Proposal

• Earlier, members of the union rejected a proposed 13.16% across-the-board wage increase valid for two years, Reuters reported.

(Reporting by Aida Pelaez-Fernandez;Editing by Tomasz Janowski)