PUEBLA, Mexico —AG reaches a new wage deal with workers at its assembly plant here. The pact ends nearly two weeks of labor strife, including a five-day strike that began Aug. 18 and reportedly cost the automaker US$7 million a day.
Officials for the Independent Union ofWorkers, which represents 12,600 employees at the facility, say the new contract includes a 13% increase in basic pay, a 5% bonus linked to productivity and 3% in other bonuses.
The deal is retroactive and includes half pay for the days the workers were on strike. The union was seeking a 19% raise, while the company initially was offering 12%.
The plant is the sole source of the New Beetle and also builds the Jetta and Golf. Last year it produced 410,308 vehicles and is expected to build 430,000 vehicles this year.