Mexico: partial unemployment spreading in the auto industry

Given the limited legal framework, car manufacturers are juggling with working time reductions, temporary suspensions for some of their staff or anticipated leaves to reduce production and offset the drop in sales. Within a week, four large manufacturers - Volkswagen, Chrysler, Nissan and Daimler - announced plans to reduce working time. The domino effect is felt in small businesses making spare parts. (Ref. 090059)
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Volkswagen’s Mexican
subsidiary announced three days of suspension of labor on January 19-21 in the
Puebla factory, a symbolic plant for the brand in Latin America. About 10.000
workers will be affected by this measure to reduce production. During these
three days, the German manufacturer promised to pay 50% of the wages.

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