MEXICO CITY -- Volkswagen's Mexico unit has reached a deal with the Independent Union of Automotive Industry Workers over a new labor contract after more than three weeks of negotiations, the automaker said Tuesday.
Manuel Aburto, the union's spokesman, said the pay increase under the new deal amounted to 5.46 percent, including a salary hike of 3.62 percent and a rise in benefits of 1.84 percent.
The new deal will go into effect at 11 a.m. local time Tuesday, the company said in a statement.
Unionized workers at Volkswagen's plant in the central state of Puebla, one of the largest auto plants in Mexico, had sought a 12 percent wage increase and threatened to strike over the demands by Aug. 18.
