Volkswagen AG averts a strike at its assembly plant in Puebla, Mexico, by reaching a deal Aug. 17 with labor leaders that increases pay 4.2% for the factory’s 11,000 workers. Union leaders originally demanded a 12.5% raise. The new contract also includes improved benefits, Reuters reports. Workers at the Puebla plant, which produces the New Beetle and Jetta, went on strike for four days last year and for 18 days in 2001. Contract negotiations are held annually.

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