Industry Notes

Automotive

Independent Union at Volkswagen in Mexico Settles Without Strike

In early September the Sindicato Independiente de la Volkswagen de Mexico, which represents 10,300 workers at the VW assembly plant in Puebla, settled its annual wage re-opener without a strike for the first time in three years. Many Mexican contracts have an automatic annual wage re-opener, resulting in annual wage negotiations, even though the rest of the agreement remains in force.

The VW union is one of the very few automobile unions in Mexico that does not belong to the CTM, the labor federation tied to the party that ruled Mexico for over 70 years. Instead, it is a member of the UNT, a federation made up of unions that are independent of the government or any political party.

The agreement calls for a wage increase of 5.5 percent and an additional increase of 1.5 percent in company provided benefits. The benefits to be increased are company-provided stipends and allowances that show up on the pay stub, not health care or other benefits as we traditionally negotiate them in the U.S. In 2001 the VW union won a raise of 10.2 percent in pay and 4.5 percent in benefits, while the 2000 increases were 18 percent and 3 percent respectively.

The settlement brings typical weekly pay at Volkswagen in Mexico to between $230 and $250, making the Volkswagen workers among the very highest paid autoworkers in all Mexico.

Honda Motor Company producing more in North American plants than in Japan by 2004

Scheduled capacity expansions at Honda Motor Company’s non-union North American engine and vehicle assembly plants will increase Honda’s production to an estimated 1.4 million units annually by 2004. This will surpass Honda’s estimated Japanese production of 1.2 million units annually.

Honda’s North American production and assembly plants

Lincoln, AL - Odyssey mini-van and V-6 engines
Marysville, OH - Accord Sedan and Coupe. Acura TL and CL
East Liberty, OH - Civic - Sedan, Coupe and GX

Russells Point, OH - Transmissions
Anna, OH - Engines

Marysville, OH - Motorcycles
Timmonsville, SC - All-Terrain Vehicles
Swepsonville, NC - Power Equipment