VW Mexico Puebla Strike on Hold as Workers Vote on Deal
MEXICO · PUEBLA · LABOUR
Key Facts
- —The country Mexico is Latin America’s second-largest economy and a major car exporter, above all to the United States. Volkswagen’s plant in Cuautlancingo, in Puebla state, builds the Jetta, Tiguan and Taos.
- —The background The plant dismissed 611 workers after cutting a shift on its Jetta-Tiguan line. On 11 September, 73% of voting union members rejected an 18-month pay deal their leaders had signed.
- —Why now The union’s strike notice, already extended four times, was due to run out at 11:00 (17:00 UTC) on Friday 2 October.
- —What happened Hours before that deadline, Volkswagen de México and its union agreed a tentative 24-month deal worth 13.16% overall. The union is seeking a fifth extension of the strike notice so that workers can vote.
- —The numbers Base pay rises 3.80% in 2026 and 3.50% in 2027. The deal includes a one-off payment of 17,800 pesos (about US$973), and the 611 dismissed workers are to be re-hired.
- —What it means for you No strike will halt the Puebla plant before the vote. Taos output stops next week anyway for lack of parts, a separate supply problem.
- —Still open Whether more than 6,400 union members accept the deal. The date of the vote has not been announced.
Workers at the Volkswagen Mexico car plant in Puebla will not strike this week. Hours before an 11:00 deadline on Friday 2 October, the company and its union agreed a tentative two-year pay deal.
The deal is not final: more than 6,400 unionised workers must now vote on it. The union is seeking a fifth extension of the strike notice to allow that.
What the deal contains
The union is the Independent Union of Automotive Industry Workers at Volkswagen de México, known as SITIAVW. It puts the package at 13.16% overall across 2026 and 2027.
That figure adds pay, benefits and one-off payments, so it is not a 13% pay rise. For 2026, base pay rises 3.80%, and the year’s total reaches 9.41%.
The rest of 2026 comes from a higher wage grade for 447 specialists, a larger savings fund and a one-off payment. That payment is 17,800 pesos (about US$973).
Peso figures use 18.2965 pesos per US dollar, the 1 October close. For 2027, base pay rises 3.50% and the savings fund adds 0.25%.
As a yardstick, private analysts surveyed by Mexico’s central bank expect inflation of 3.87% at the end of 2026. The base-pay rise roughly matches that, so the real gain in 2026 comes mainly from the one-off payment.
The deal also re-hires the 611 dismissed workers, whose layoffs The Rio Times covered, and guarantees the current workforce while it runs. The deal skips the 2027 pay round, so the next review comes in 2028.
Why the first deal failed
Union leaders had signed an 18-month deal on 26 August, worth 10.04% overall with a 4.30% base-pay rise. In a vote on 11 September, 4,327 of the 5,925 workers who took part, or 73%, rejected it.
The new deal pays less on base salary, 3.80% against 4.30%, but covers two years. Its one-off payment is larger, at 17,800 pesos against 16,300 pesos (about US$891).
It also improves on Volkswagen’s offer earlier in the week. According to El Sol de Puebla, that two-year offer proposed 3.6% on base pay and a one-off 16,300 pesos (about US$891).
What the two sides say
In a statement to members early on Friday, the union called the talks “extremely arduous, complex and deeply draining”. It urged them to stay united and “make the best collective decision”.
Volkswagen de México called the deal its “greatest viable effort” amid “significant challenges for the Group, the brand and the company itself”. Its statement quoted Stephan Meier, executive vice-president for human resources and organisation.
“Concluding this agreement would send a positive signal to the group,” the statement said. It added that this would show the Mexican team is “aware of and empathetic” to the group’s worldwide circumstances.
The company credited mediators from the Federal Centre for Conciliation and Labour Registration, the federal body that registers union contracts and mediates disputes. The German parent is also cutting costs in Europe, as The Rio Times reported in September.
What comes next
The date of the vote has not been announced, and the union’s statement gave none.
A yes vote would settle pay until 2028 and bring back the 611 dismissed workers. A no vote would send both sides back to the table, with the strike notice still pending.
Friday’s deal does not end the dispute. The plant’s wider pressures, from US tariffs to job cuts, remain as The Rio Times reported in August.
Has the strike at Volkswagen’s Puebla plant been called off?
Not for good. The 2 October strike was put off because the union and Volkswagen agreed a tentative deal, and the union is seeking a further extension of the strike notice. Workers still have to vote on the deal.
Is the Volkswagen Mexico deal a 13% pay rise?
No. The 13.16% figure adds pay, benefits and one-off payments over two years. Base pay rises 3.80% in 2026 and 3.50% in 2027.
When will Volkswagen’s Puebla workers vote?
The date has not been announced. The union’s statement gave none, and workers still have to vote on the deal.
Which cars does the Puebla plant build?
Volkswagen’s plant in Cuautlancingo, in the Mexican state of Puebla, builds the Jetta, the Tiguan and the Taos compact SUV.
Sources: La Jornada de Oriente, tentative deal and vote, 2 October 2026, La Jornada de Oriente, Volkswagen statement, 2 October 2026, El Sol de Puebla, new two-year deal and vote date, 2 October 2026, El Sol de Puebla, Volkswagen offers, 29 September 2026, El Universal Puebla, 2 October 2026, Diario Puntual, 2 October 2026, e-consulta, 2 October 2026, Tribuna Noticias, fifth extension, 2 October 2026, El Sol de México, Banco de México analyst survey, 1 October 2026. Volkswagen de México press release and SITIAVW statement to members, both 2 October 2026, as quoted by the outlets above. Exchange rate: RT live market data, 1 October 2026 close. All retrieved 2 October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief