Audi union in Mexico sets January 1 as the limit to reach a wage agreement

Representatives of workers of the Mexican plant of the Audi have set a January 1 deadline to reach an agreement with the company on wage increases without starting a strike, the union said Thursday.

The Independent Union of Workers of Audi Mexico (SITAUDI) and the company had previously negotiated two salary increase options for the plant’s 4,000 unionized employees in Puebla.

Last week, the workers rejected both proposals, bringing the union and the company back to negotiations.

One of the options offered an 8.4% wage increase in 2023. The other proposed a 9.4% increase next year, followed by annual increases through 2026 in line with inflation, plus one percentage point.

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César Orta, leader of the SITAUDIstated that the workers were disappointed by the previous multi-year agreements and that he respected their rejection of the new offers.

“They voted NO and that is respectable; union democracy was exercised and the voice of the majority was respected,” he said, adding that the workers would go on strike if a new agreement is not reached before January 1.

Audiowned by German automaker Volkswagen, said it would continue talks with SITAUDI in the hope of reaching an agreement that benefits the company and workers.

The company’s plant in Puebla, open since 2016, produces the Audi Q5 SUV.

Workers at a nearby Volkswagen plant initially rejected a union-brokered offer of 9% raises, one of the highest at an automaker in recent years.

They agreed to the deal in September after the company agreed to extend the increase for another month.

Annual general inflation in Mexico reached 7.77% in the first half of December.

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