GM says ‘progress’ made in wage talks with new union in Mexico

MEXICO CITY, April 28 (Reuters) – Basic Motors (GM.N) made “essential progress” in wage negotiations with a brand new unbiased union representing a number of thousand employees at a GM plant in central Mexico, the auto big instructed Reuters on Thursday.

Reuters reported earlier this week that the union, SINTTIA, stated it initially proposed a 19.2% elevate, which GM countered with a proposal of three.5%. learn extra

The pay negotiations are a part of a high-profile take a look at case for a brand new commerce deal that seeks to shut the huge hole between U.S. and Mexican wages. If SINTTIA lands a giant elevate for the employees within the central Mexican metropolis of Silao, the victory might usher in comparable calls for at different firms, specialists say.

“The assembly was productive, each events confirmed the dedication we have now for the employees of GM Silao,” the corporate stated in a press release to Reuters.

GM on Thursday didn’t tackle which wage proposals had been below dialogue. It stated talks would proceed on Could 5 in an effort to succeed in a deal rapidly.

Hector de la Cueva, an adviser to SINTTIA from employee rights advocacy group CILAS, stated the corporate took a “much less aggressive” place and that talks moved ahead. He declined to debate particular wage proposals.

SINTTIA and the U.S. automaker started talks final month after employees ousted their highly effective long-time union and elected an unbiased group led by fellow employees, one of many first such elections below the brand new commerce deal, the United States-Mexico-Canada Settlement (USMCA).

The provisions within the 2020 deal that changed NAFTA had been meant to assist Mexican employees elect unions they really feel will greatest 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 firms to Mexico.

Reporting by Daina Beth Solomon; Writing by Laura Gottesdiener; Enhancing by Sandra Maler and Lincoln Feast.

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