UPDATE 1-Volkswagen Mexico reaches deal with workers


(Adds details and background) MEXICO CITY, Aug 17 (Reuters) - Volkswagen AG's Mexican unit reached an agreement with union leaders on Wednesday to increase workers' pay and avoid a strike. More than 11,000 union workers at Volkswagen's plant near the city of Puebla accepted a 4.2 percent pay raise, preventing a walkout scheduled for Thursday, union leader Jose Luis Rodriguez told reporters. The Puebla plant, about two hours' drive southeast of the capital, is the only Volkswagen ...

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