GM, new union strike deal for raises at central Mexico plant

A view of the principle entrance of the Common Motors’ pickup truck plant as employees vote to elect a brand new union beneath a labor reform that underpins a brand new commerce take care of Canada and the US, in Silao, Mexico February 1, 2022. REUTERS/Sergio Maldonado

MEXICO CITY, Could 11 (Reuters) – Common Motors (GM.N) and a brand new impartial union on the U.S. automaker’s largest Mexico plant have reached a deal for a brand new employees’ contract that features raises and advantages above inflation, the union stated on Wednesday.

The negotiations at GM’s plant within the central metropolis of Silao in Guanajuato state marked a high-profile check case for a brand new commerce deal’s purpose of lowering the huge wage hole between U.S. employees and their Mexican counterparts.

The settlement comes after talks started a number of weeks in the past, and prevents a Could 31 deadline for employees to strike.

“The brand new collective contract improves labor circumstances on all ranges,” the union, SINTTIA, stated in an announcement. “The agreed deal contains an financial package deal of wage will increase and financial advantages that’s above inflation.”

SINTTIA didn’t present additional particulars concerning the above-inflation wage deal. Mexican headline inflation rose 7.68% within the yr by April to its highest ranges since January 2001. learn extra

GM didn’t instantly reply to a request for remark.

SINTTIA turned the primary impartial union within the GM Silao plant’s 25-year historical past in one of many first union elections beneath the commerce deal, the United States-Mexico-Canada Settlement (USMCA).

The provisions within the 2020 deal that changed the North American Free Commerce Settlement (NAFTA) had been meant to assist Mexican employees elect unions that can finest struggle for his or her pursuits, breaking the grip of business-friendly teams that operated behind employees’ backs for years as low-cost labor lured corporations to Mexico.

Reuters reported final month that SINTTIA initially proposed a 19.2% increase, citing rising inflation in Mexico, which GM countered with a proposal of three.5%. learn extra

Reporting by Daina Beth Solomon
Modifying by Nick Zieminski

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