Wage Increase and Upcoming Adjustments Due to Tariff Impact
The Volkswagen Workers’ Union, represented by the Independent Union of Automotive Industry Workers (SITIAVW), has successfully negotiated a 6.16% global wage increase, including a 4% salary boost and adjustments in other benefits. However, the union now faces new challenges due to tariff impacts that have prompted Volkswagen to predict a cancellation of approximately 18,000 units by 2025.
Key Negotiation Details
- Wage Increase: The negotiated global wage increase comprises 4% in salary, 1% in savings fund, 0.2% for special job level salaries, and 0.96% as a one-time payment of $3,000.
- Future Negotiations: The union and Volkswagen will reconvene in three weeks to discuss proposed measures, such as technical stoppages and reducing a shift that could affect over 1,093 workers.
Addressing Tariff Impact and Workforce Challenges
Hugo Tlalpan, General Secretary of SITIAVW, stated that the union has experience in implementing strategies to avoid layoffs and mitigate the impact of planned technical stoppages by Volkswagen de México in its Puebla plant. The tariff challenges have led Volkswagen to anticipate a reduction of around 18,000 units this year, potentially causing an excess of personnel equivalent to a full shift of the current 7,131 basified employees.
Tlalpan mentioned that the company has indicated a need to address staffing issues in September or October. In response, SITIAVW has “schemes and alternatives” to prevent labor impacts, focusing on stability and permanent employment.
Technical Stoppages and Workforce Adjustments
Volkswagen has communicated that technical stoppages could last five to six weeks, particularly in the Jetta and Tiguan model production segments where three shifts currently operate. While previous technical stoppages were mainly due to component shortages, upcoming ones would be justified by reduced production, according to Tlalpan.
Tlalpan clarified that although the exact dates for technical stoppages haven’t been determined, the union is prepared with strategies from past experiences. In previous stoppages, they successfully negotiated up to 70% salary payments for workers and vacation options.
Union’s Message to Workers
The SITIAVW assures workers of their readiness to tackle the situation and their pursuit of alternatives to safeguard jobs. The union, part of the National Union of Workers (UNT), maintains constant communication with colleagues.
No Voting Required for Recent Benefits
Tlalpan emphasized that the recent wage review, which modified some contract clauses with a global benefit of 6.16%, did not require voting as it directly benefited the base.
Similarly, negotiations on potential staff reductions and technical stoppages will not undergo a vote since they are deemed beneficial to workers.
