Volkswagen Says Labor Agreement Reached With Workers in Mexico

http://www.bloomberg.com/apps/news?pid=20601086&sid=aL5JjTRLevx4

By Jens Erik Gould

Aug. 22 (Bloomberg) -- Volkswagen AG, Europe’s largest carmaker, reached an agreement with a workers’ union at its Puebla, Mexico, plant to end a strike that began Aug. 18, the company said in a statement.

More than 9,000 workers will receive a 3 percent increase in their pay and a one-time payment of 2,000 pesos ($155), the Labor Ministry said in a statement.

“Due to the results of this revision, Volkswagen’s labor costs in Puebla continue to rise, while the rest of the auto industry in Mexico hasn’t given salary increases this year,” the company said in the statement. “This will force the company to reinforce measures to improve its production levels.”

The statement doesn’t say how long the contract is for and a Labor Ministry spokesman didn’t immediately know. Attempts to reach the union were unsuccessful.

FULL story at link.