Mexico's VW workers strike after talks collapse

Workers at Volkswagen AG's plant in Mexico went on strike yesterday after negotiations for a salary increase broke down. The union, which represents 9,400 workers at VW's Puebla plant, rejected the company's offer of a 1-per-cent pay increase starting in February and one-time bonus of 5,500 pesos ($468), union spokesman Arturo Monter said. Unionized workers, who earn an average pay of 370 pesos a day, are demanding an 8.25-per-cent salary raise. Mr. Monter said the strike will paralyze production of 1,500 cars a day. VW's car output in Mexico fell nearly 37 per cent between January and July compared with the same period in 2008, according to the Mexican Auto Industry Association. VOW (Frankfurt) fell €1.55 to €171.45 ($266.99).