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NEWS & LETTERS, October 2001

Puebla VW strike

In Mexico, 12,500 Volkswagen workers at the Puebla plant went on strike for nearly three weeks in August and September, gaining a wage settlement of 10.2%, with another 4.5% for food and school supplies vouchers. VW is also supposed to make up half the pay workers lost during the strike. 

The union had originally demanded a 30% increase in wages. In the past, the workers at VW Puebla have wrung out significant concessions in pay and working conditions because the plant was crucial to VW's exports to the U.S., especially with the low wages paid to the Mexican workers.

The Puebla plant normally builds over 8,900 cars per week, with over 80% going to export. Under the new agreement, VW workers will now make approximately $29 a day. On Sept. 6, the day following the settlement, VW announced suspension of its $1.5 billion five-year plan for its Mexican operations.

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