Going by the information extended by Volkswagen de Mexico to Efe, the Volkswagen AG management and its union reached a wage agreement on Saturday, thereby bringing to an end the strike that began earlier this week at the Puebla auto factory.

Volkswagen agreed to give workers a 3-percent pay raise accompanied by a corresponding increase in benefits, so that starting Saturday production was expected to be back to normal

As per the agreement, reached in negotiations at the Labor Ministry, the workers have accepted Volkswagen management's offer of a 3-percent increase in pay, and a one-off payment of 2,000 pesos per worker, along with a corresponding increase in benefits. Out of the decided wage raise, the workers will be paid a 2 percent wage increase from August 18; and the remaining 1 percent with effect from December 1.

It was on Tuesday that the workers had begun the five-day strike, after rejecting the management's offer of a 1 percent wage increase starting February. Initially, the union demanded an 8.25 percent increase, which it later lowered to 3 percent plus the one-time payment.

However, with the agreement being finally reached, Volkswagen de Mexico expects production to resume Monday. Statistically, the loss of production, due to the strike, included nearly 6,000 autos of the Volkswagen's Bora, Variant, Jetta and Beetle models.