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Tuesday, 22 August 2006, 05:30 GMT 06:30 UK

VW's Mexico staff may cut demands

Volkswagen Beetle The union representing striking workers at Volkswagen's (VW's) Mexico factory has said it is prepared to reduce its wage demands to help end the dispute.

As workers prepared to down tools for a fourth day on Tuesday, the union said it was ready to lower its 8.5% pay rise demand, but gave no exact details.

Managers at the Puebla factory, which makes all VW's Beetle cars, have so far only offered a 4% increase.

In 2004, workers at the plant won a 4.5% pay rise after a four-day strike.

Another walkout at the Puebla facility in 2001 lasted 18 days before the two sides reached agreement.

Best-selling

In the latest dispute some 9,700 union workers worked out on Friday.

The Puebla plant usually makes 300,000 Beetles a year.

The new Beetle was introduced in 1998 and VW's Mexican factory now produces two main models, the original hatchback and a convertible.

It replaced the original Beetle, which was made from 1938 to 2003 and was one of the best-selling cars of all time with more than 22 million vehicles produced.




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Related to this story:
VW's Mexico staff vote to strike (18 Aug 06 |  Business )
VW denies report of more job cuts (18 Jun 06 |  Business )
Volkswagen gets go-ahead in India (09 Jun 06 |  Business )
VW chief's future in the balance (02 May 06 |  Business )
Volkswagen earnings disappoint (28 Apr 06 |  Business )
Angry workers upset VW's new car plans (07 Mar 06 |  Business )

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