Volkswagen de México reached a last-minute agreement with the Sindicato Independiente de Trabajadores de la Industria Automotriz Volkswagen (SITIAVW) for a 4% wage increase for 2025, averting a strike that was scheduled to begin on Monday at 11 a.m. The deal also boosts the workers’ savings fund by 1%. The accord covers roughly 7,000 unionised employees at the automaker’s Puebla assembly complex, one of the German group’s largest worldwide. The union had initially sought a 14% raise but lowered its demand after overnight negotiations mediated by federal labour officials. Volkswagen cited a challenging global auto market and heightened trade uncertainty in North America in defending a smaller increase than the 10.5% package awarded last year. The Puebla plant turned out about 382,000 vehicles in 2024, but output fell nearly 20% in the first seven months of 2025, underscoring management’s push for cost discipline while preserving labour peace.