A 7% salary increase and more jobs: Audi's 'in extremis' offer to settle its first strike in Mexico

16 days after the red-and-black flags began to fly on the façade of the Audi plant in Puebla, the German automaker has made one last offer to its workers to avert the strike that broke out at the end of last month.

In addition to the offer of 7% of the salary—an increase below the 15% demanded by the union—the company has assured that if the more than 4,159 union members endorse this proposal and end the suspension of work, work will be guaranteed for the 1,300 technicians. and temporary employees will receive a contract for an additional 12 months.

The company has launched this latest offer

to avert a strike, which according to the automotive sector, already exceeds 10,000 million pesos in losses.

The more than 4,000 workers assigned to the Independent Union of Audi Mexico Workers (Sitaudi) will go this Friday to the University Cultural Complex of the Benemérita Universidad Autónoma de Puebla (BUAP) to vote for or against the German automaker's offer of 5 % to the direct salary and 2% more in benefits, that is, a comprehensive proposal of 7% more in their salary in 2024. Despite the increase, this increase represents less than half of the 15% that the union is seeking.

Employees argue that in other assembly companies, workers have achieved a double-digit increase.

Voting hours will be from 8:30 a.m. to 10:00 p.m. this Friday.

On the eve of this crucial vote, the German automaker sent a statement to its workers exposing the alleged risks of continuing with this strike for the viability of the plant in Puebla.

The company states that if the production lines continue to be stopped, the production and sales of Audi Mexico will be negatively impacted, putting the attraction of future projects at risk.

On the contrary, he affirms that if the workers accept his proposal, they will be paid all of their accrued salaries starting next week, contemplating the retractive payment of the salary increase from January 1 to date.

In addition, Audi undertakes to cover 50% of lost wages corresponding to the days of strike and to deposit the food vouchers for the month of January.

Audi workers wave red-and-black flags at the company's facilities, on January 24 in Puebla. IMELDA MEDINA (Reuters)

The leader of Coparmex in Puebla, Rubén Furlong Martínez, warns that the extension of the strike, which has already accumulated 384 hours, will impact the image of the plant based in San José Chiapa.

According to the employers' body, each day of strike is equivalent to 700 vehicles that are no longer produced from this factory, an operational disaster estimated at 10,000 million pesos in losses.

“A strike is not good for anyone, not for the State, not for the company, much less for the workers,” he concludes.

Furlong Martínez explains that this labor conflict taken to its final consequences is the first strike in Puebla since 2009, when a similar conflict broke out at the Volkswagen assembly plant.

"There is not much more room for maneuver for the company, it is the maximum point they could reach and I hope that the workers can reflect on the change that the premium automobile market has had, the company has to compete for these projects with others factories of the same group.

Not necessarily what happens at another company can be a point of comparison for what happens at Audi,” he says.

The business representative trusts that this Friday the two parties: managers and union members will reach an agreement beneficial to both.

Otherwise, he mentioned the gap in economic losses for Puebla, and even for other auto parts supplier states such as Querétaro, will continue to grow.

The automotive industry in Mexico closed 2023 with growth in production and exports.

Mexico sent 3.3 million units abroad, a growth of 15% compared to 2022. In addition, automotive companies in the country assembled a total of 3.7 million vehicles last year, 14% more compared to the previous year. according to data from the Mexican Association of the Automotive Industry (AMIA).

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