VW, Mexican Workers Fail to Agree on Wages

A new attempt to reach a pay deal between workers and German car maker Volkswagen’s Mexican unit was abandoned without agreement, a union representative said. Smarting after the government last week declared its strike illegal, the union representing 12,600 workers at Volkswagen’s only plant producing the popular New Beetle had cut its demand for a pay increase to 17% from 20%. But labor leader Jose Luis Rodriguez said management had refused to raise its offer of a 12% hike for workers at the plant in Puebla, 77 miles southwest of Mexico City. The union bases its wage demand on productivity gains at the plant, which it says VW does not reward. Rodriguez said the company’s stance has forced the union to consider calling a new strike. The latest meeting between the union and management was the third unsuccessful attempt to reach a deal since workers returned to their jobs last week. Another round of talks is set for Tuesday.