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 German automaker said Tuesday.
The new deal will go into effect the same day at 11 a.m. local time, the company said in a statement. It added that the union would separately detail the terms of the new deal.
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.
