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Article

12 May 2022

Author:
Bloomberg

Mexico: After agreement with new union, GM Silao workers will get 13% pay rise

Agência Brasil - EBC

"GM Hikes Mexico Plant Wages by 8.5% in Landmark Deal With Union", 12 May 2022

...General Motors Co. will raise wages 8.5% for workers at its giant truck factory in central Mexico in a deal struck with a new union that swept into power through a landmark labor vote backed by the US.

The labor agreement at the plant in Silao, Guanajuato, also includes quarterly bonus increases of 1,600 pesos (about $79), the union said in a statement...

Employees at the plant have said they earn less than $25 a day, compared with a range of $18 to $32 an hour at GM plants in the US. An 8.5% raise would mean about $2 extra per day for the average workers plus bonuses, still leaving a wide gap in comparison to workers in the US...

The union won the right to represent more than 6,000 workers at the plant in a bellwether election in February that was a test to labor reforms encouraged both by the North American free trade agreement known as USMCA...

The GM labor agreement also establishes a program of “salary recovery,” as well as bilateral protocols to involve the union in important decisions at the plant on workers’ rights and conditions, SINTTIA said.

The agreement will be put up for a vote among unionized workers. 

GM said in a statement it had reached an agreement with the union but declined to share details...

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