MEXICO CITY – General Motors has agreed a 8.5 % wage hike with the brand new, unbiased union at its pick-up truck plant within the central Mexican metropolis of Silao, labor representatives mentioned on Thursday, one of many highest latest raises within the nation’s auto trade.
A GM Mexico spokeswoman confirmed the increase in an e mail to Automotive Information. The plant builds the Chevrolet Silverado and GMC Sierra.
The cope with union SINTTIA additionally marks the primary main increase because the begin of a brand new commerce deal, the United States-Mexico-Canada Settlement (USMCA), which goals to cut back the huge wage hole between U.S. and Mexican employees.
“It is a victory, a step in the precise path,” mentioned Gaspar Rivera Salgado, director of the Heart for Mexican Research on the College of California Los Angeles. It stays to be seen if such raises might be simply duplicated, he added.
Following a vote intently watched by U.S. officers, SINTTIA this 12 months grew to become the primary unbiased union within the GM Silao plant’s historical past, in an early take a look at of USMCA labor guidelines.
SINTTIA mentioned alongside wages, the deal includes larger bonuses, a 14 % enhance in grocery vouchers and a compulsory time off on Christmas Eve.
The brand new contract additionally stipulates GM and the union will kind working teams to barter work schedules; a protocol for coping with sexual harassment circumstances; and a program to push again in opposition to inflation within the coming years.
The contract is nice for 2 years, though salaries might be up for assessment in a 12 months, mentioned Alejandra Morales, SINTTIA’s secretary common.
Morales mentioned she hoped employees at different vegetation would see information of the increase as an indication of what unbiased unions can accomplish in a rustic the place many firms signal so-called “safety contracts” with out employee information.
“Earlier than, there have been offers simply between firms and unions. Immediately it is potential for us employees to have actual negotiations,” mentioned Morales, a GM Silao worker for almost 12 years.
The employees will vote to approve the deal later this month.
SINTTIA had pushed for raises above inflation, which accelerated to 7.68 % in April in Mexico. It initially proposed a 19.2 % enhance, which GM countered with a 3.5 % provide.
The pay deal seems to outstrip others just lately struck by unbiased unions in Mexico’s auto sector.
Nissan this 12 months agreed to spice up wages 6.5 %, whereas final 12 months Volkswagen agreed to a 5.5 % increase. Audi’s contract, based on native media, requires elevating wages 5.four % annually from 2020 to 2022.