By Fabiola Arámburo

MEXICO CITY, June 24 (Reuters) - Workers at Audi Mexico, a subsidiary of Germany's Volkswagen, approved a contract for 2026 with a 4.6% wage increase, the company and labor union said on Wednesday, averting a potential strike at the assembly plant in Puebla state.

The union said workers voted to approve Audi's offer, which represented a 19.5% compensation increase including benefits. The one-year deal will be reviewed annually.

The union originally sought a 15% wage rise and a 5% increase in benefits as part of its 2026 contract review.

Audi and the union had earlier delayed a strike initially set for June 16, pushing the deadline to reach a deal to June 26. 

The agreement prevents a work stoppage at the Puebla plant, which employs roughly 4,000 unionized workers.

(Reporting by Fabiola Arámburo, Editing by Daina Beth Solomon and Cynthia Osterman)

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