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9,500 of VW’s Puebla factory workers walked out from the job Wednesday after asking for an
8.5% pay raise. It seems the pressure of working in the lone factory that produces VW’s new Beetle has put undue stress
and strain on the employees who shot down a 4.5% pay raise offered to their union. This isn’t the first time the
factory had labor disputes. Last year the workers threatened to walkout before getting a 5.25% pay raise, in 2001 they
settled on a 10.2% pay raise. But this year they may be pushing it since Volkswagen’s profits are down 20% in the first
half of 2004. Maybe this is a sign to stop making those Beetles, the design has run its course anyway.