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Union of the VW Puebla plant will hold a new vote on the collective agreement

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Workers at Volkswagen's main plant in Mexico will vote again on an agreement between their union and management on a previously rejected 9% wage increase, the union association reported Monday.

The Independent Union of the Volkswagen Automotive Industry (SITIAVW) reached an agreement with the firm in July for what would have been the largest increase in the automotive industry in Mexico in recent years, for almost 7,000 workers, after emphasizing the inflation levels.

But the plan failed as it did not reach enough votes for its approval.

Mexico's Federal Center for Conciliation and Labor Registration called for the consultation to be held again in an effort to ensure greater participation, SITIAVW, one of the country's strongest independent unions, said in a statement.

In the initial vote on August 5, about 70% of workers went to the polls, according to the labor authority. The votes against the agreement exceeded with 338 the ballots registered in favor.

SITIAVW added that it has yet to set a date for the new vote, but that it will resume the process in its entirety, including the distribution of the recently negotiated contract for the plant, in the central state of Puebla, where Volkswagen produces the Jetta, Taos and Tiguan.

Volkswagen said it hoped this new consultation would represent the decision of the "entirety" of unionized workers. Last week, the company said it was committed to "constructive dialogue" with the union after the surprise rejection.

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