Audi Workers in Mexico Are Planning A Walkout on January 1 Over Pay

The union said Thursday that worker representatives at Audi's Mexico facility have set a Jan. 1 deadline to negotiate a deal with the corporation over salary rises without going on strike.

Audi and the Independent Union of Audi Mexico Workers (SITAUDI) had previously discussed two possibilities to increase salaries for the 4,000 unionized employees in the central state of Puebla.

Last week, employees rejected both ideas, bringing their union and employers back to the negotiating table.

One option promised a wage raise of 8.4% in 2023. The other proposed an increase of 9.4% in 2020, followed by yearly increases through 2026 that are in line with inflation plus one percentage point.

Cesar Orta, the leader of SITAUDI, stated that workers were dissatisfied with prior multiyear contracts, and he appreciated their rejection of the current offers.

"That they voted "no" is commendable. We practiced union democracy and honored the voice of the majority. "He said that workers might walk off the job if a new contract is not negotiated by January 1.

Audi, which is owned by German automaker Volkswagen (ETR:VOWG p), stated that it will continue negotiations with SITAUDI in an effort to establish an agreement that benefits the firm and its employees.

Since 2016, the company's Puebla factory has produced the Audi Q5 SUV.

An offer made by their union for 9% wages, one of the largest at an automaker in recent years, was first rejected by workers at a neighboring Volkswagen plant.

They agreed to the terms in September after the corporation agreed to retroactively apply the raise.

In the first half of December, Mexico's annual headline inflation reached 7.77%.