MEXICO CITY: Volkswagen’s Mexico unit on Thursday urged hundreds of staff within the central state of Puebla to reconsider their demands for wage will increase because the company anticipates a 24% drop in home gross sales due to the coronavirus.
After suspending operations in Mexico for greater than three months to comprise the pandemic, the automaker faces a contract negotiation wherein its unionized workers in Puebla are searching for a 12% wage improve.
Workers might go on strike beginning Aug. 18 if their demands aren’t met, the union advised native media.
The union didn’t instantly reply to a Reuters request for remark.
Volkswagen was one of many last automakers to resume operations in June after strict health measures put in place by Puebla’s state authorities. Puebla’s capital is a hotbed for the coronavirus, with nearly 11,000 confirmed circumstances.
“Now that there are no (resources), we have to find more creative solutions,” Volkswagen spokesman Mauricio Kuri said in an interview with native radio.
He added that Volkswagen had not laid off workers in Mexico in the course of the disaster.
As of May, the company had 11,364 staff at its plant in Puebla, together with administrative and technical workers.
Kuri said greater than 600 staff who’re thought-about “vulnerable” to the virus remained of their houses and had to be quickly changed.
Volkswagen expects to promote lower than one million new automobiles within the Mexican market this year as gross sales close to their lowest ranges for the reason that financial disaster of 2009, when fewer than 755,000 models had been bought, Kuri said.
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