Volkswagen AG and workers at its Puebla, Mexico, assembly plant have reached a deal in a wage dispute, averting a strike. Employees at the plant, which builds VW’s Jetta and New Beetle models for the North American market, will receive a 5.5% wage hike and a 1.5% increase in benefits, under the new agreement. Workers were demanding a 10.2% raise. Some 10,500 members of the Volkswagen de Mexico S.A. de C.V. union were set to strike Sept. 3. The deal ends five weeks of negotiations.

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