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Dragunov
08-19-2009, 12:20 AM
August 18,2009
MEXICO CITY – Union workers went on strike Tuesday at the Volkswagen plant in the central Mexican city of Puebla, which normally produces 1,520 units per day of the German automaker’s Bora, Variant, Jetta and Beetle models.

The union that represents 9,243 of the 12,908 employees at the Puebla complex declared the strike after an apparent breakdown in talks on a new collective bargaining agreement.

Company sources told Efe that while the union sought an 8.25 percent wage increase for 2010 plus additional benefits, VW offered a 1 percent raise and a one-time bonus of 5,500 pesos ($423).

Even before the walkout, VW forecast a 30 percent decline in production at Puebla this year.

Union chief Victor Jaime Cervantes told reporters the workers were prepared to prolong the strike as long as necessary.

He said the negotiations had taken place in an atmosphere of respect until Tuesday morning, when VW representatives “asked for a recess and didn’t come back,” a move he condemned as “rude.”

Cervantes also said that the union had already scaled back its demands and is now asking for a 3 percent wage increase.

Both Volkswagen and the union expressed willingness to continue talking.

“The strike benefits no one,” Cervantes said.

Mexico’s Labor Department summoned both sides to a conciliation process set to begin Thursday.

The department asked VW and the union to make “the maximum effort” to achieve “an accord that permits them to balance the legitimate interests of each one of the parties, in the context of an economic recession and, particularly, of great difficulty for the automotive industry.”

A source with VW said the company had sufficient inventory on hand “for a few days.”

Volkswagen announced last month that it plans to begin producing a new model at the Puebla factory, where capacity will be expanded from 450,000 units annually to 550,000 thanks to $1 billion in new investment.

Mexico’s auto output fell 42.9 percent during the first half of 2009 compared with the same period last year, according to figures from the Mexican Automotive Industry Association. EFE

http://www.laht.com/article.asp?ArticleId=341687&CategoryId=14091

59Diesel
08-19-2009, 01:11 AM
VW built in Mexico surprised not really.

Auto Unions ruin the industry. Plenty of other companies work great without them Honda and Toyota for example.

I hope everything gets worked out. Cause strikes hurts everyone.

tea drinker
08-19-2009, 03:21 AM
Company sources told Efe that while the union sought an 8.25 percent wage increase for 2010 plus additional benefits, VW offered a 1 percent raise and a one-time bonus of 5,500 pesos ($423).
That's mad, aren't costs dropping in mexico for the past year, just like the rest of the world? Why would they get a raise on top of that.


Even before the walkout, VW forecast a 30 percent decline in production at Puebla this year.
Not a good time to make demands for a raise.

DC5dude
08-20-2009, 12:31 AM
VW built in Mexico surprised not really.

Auto Unions ruin the industry. Plenty of other companies work great without them Honda and Toyota for example.

I hope everything gets worked out. Cause strikes hurts everyone.

Honda and Toyota are the best automakers, period. Go figure:roll:

Seek
08-20-2009, 11:40 AM
quite funny, because VW and the unions get along nicely in Germany... Making cars is one of the best paid jobs in germany.

59Diesel
08-21-2009, 02:39 AM
Honda and Toyota are the best automakers, period. Go figure:roll:

Most American made doesn't make sense does it?:cantbeli:

Honda MAP and ELP are right up the road from me. They employ pretty much most of the county and others.

I can't blame them though. Toyota and Honda work perfectly fine without Unions still get health and times off unlike other Unionized Automakers.

XShipRider
08-21-2009, 05:54 AM
That's mad, aren't costs dropping in mexico for the past year, just like the rest of the world? Why would they get a raise on top of that.


Not a good time to make demands for a raise.

They're following the American labor model. Maybe they didn't get the word -- GM and Chrysler are all but buried. Good luck with that strike.

Unions and management need to get a clue - fair/honest wage for honest/fair work, safe working conditions, a few bennies but no free lunches, time off for sickness and health. Bonuses to the best workers instead of blanket bonuses whereas the slugs get to ride on the coattails of the best producers.

Oh, and no golden parachutes for non-producers in management either. I don't care how good this person was at Company X, until this person proves true long-term value at this company they don't get anything other than decent compensation. Maybe something along the lines of "the parachute kicks in if this company has XX increase in market value or share 7 years after said CEO (or other company officer) leaves." That would sort of shake up the whole CEO bailing while failing biz model.