SITIAVW AND VOLKSWAGEN REACH AGREEMENT ON A PAY RISE
Mexico’s Independent Car Industry Workers’ Union and the German company, Volkswagen, have agreed a 4.2% pay rise, avoiding a strike for better conditions.
MEXICO: Mexico’s Independent Car Industry Workers’ Union (SITIAVW) and the German company, Volkswagen, have reached agreement on a 4.2 % pay increase this year and an additional monthly bonus of 66 pesos (US$6), for the purchase of basic goods. The agreement covers the company’s 11,400 workers. The strike in support of better conditions, planned for August 18, has been called off.
Negotiations ended yesterday at the Department of Employment, where the agreement was signed by SITIAVW leader, José Luis Rodríguez, and the vice-president of the company’s board of directors, Francisco Bada.
On Tuesday, August 16, workers voted on whether to go on strike or give the union’s negotiating committee the authority to negotiate an agreement with the company. Around 60 per cent of workers supported a motion to authorise the union to negotiate directly with the union and take a decision on the pay rise.
José Luis Rodríguez Salazar told the country’s media that the solution to the conflict was very important, especially "because both sides had signed an agreement to establish a flexible working day on August 8".
The new system will involve four days work followed by three days off. It will avoid the dismissal of more than 2000 employees and promote job security.
Rodríguez explained that the union has sought to maintain the company’s workforce while, at the same time, achieving a decent pay rise for the workers. [August 18, 2005]
