Mexico VW workers agree to salary cuts

Union members at Mexico’s Volkswagen plant in Puebla have agreed to negotiate salary cuts to avoid 2,000 job losses.

Leaders of the union will propose cutting the working week to four days from five and slashing salaries by 20%, spokesman Miguel Galan said.

Volkswagen announced earlier this week that daily production would be cut by 23% from August, leading to the possible loss of 2,000 jobs.

The company blames sluggish sales of the Jetta and New Beetle models in foreign markets, mainly the United States.