GM and new union reach deal for raises at major Mexican plant

A view of the main entrance to the General Motors pickup truck plant as workers vote to elect a new union as part of labor reform that underpins a new trade deal with Canada and the United States United, in Silao, Mexico, February 1, 2022. REUTERS / Sergio Maldonado

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MEXICO CITY, May 11 (Reuters) – General Motors (GM.N) and a new independent union at the U.S. automaker’s largest Mexican plant have reached an agreement for a new labor contract that includes raises and benefits above the inflation, the union said on Wednesday.

The SINTTIA union did not provide further details on the wage agreement. Mexico’s headline inflation accelerated to 7.68% in April, its highest level since January 2001. read more

Negotiations at GM’s plant in the central town of Silao, Guanajuato state, have been a high-profile test case for a new North American trade deal’s goal of narrowing the wide wage gap between workers. American workers and their Mexican counterparts.

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The agreement comes after talks began several weeks ago and comes ahead of the May 31 deadline set by SINTTIA for workers to strike.

“The new collective agreement improves working conditions at all levels,” SINTTIA said in a statement. “The agreed deal includes an economic package of wage increases and economic benefits above inflation.”

GM did not address specifics of the deal, but said negotiations were complete.

Reuters reported last month that SINTTIA originally offered a 19.2% raise, citing rising inflation in Mexico, which GM countered with a 3.5% offer. Read more

A vote for workers to approve the contract is likely to take place towards the end of May, SINTTIA general secretary Alejandra Morales told Reuters.

SINTTIA became the first independent union in the GM Silao plant’s more than 25-year history in one of the first union elections under the new trade agreement, the United States-Mexico-Canada Agreement (USMCA ). [nL1N2UE0N7]

Provisions of the 2020 deal that replaced the North American Free Trade Agreement (NAFTA) aimed to help Mexican workers elect the unions that would best defend their interests, breaking the stranglehold of pro-business groups who operated behind the backs of workers for years. cheap labor attracted business to Mexico.

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Reporting by Daina Beth Solomon Editing by Nick Zieminski and David Gregorio

Our standards: The Thomson Reuters Trust Principles.

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