The new independent labor union at General Motors Co's largest plant in Mexico is seeking a 19.2% wage increase, citing surging inflation, and the U.S. carmaker has countered with an offer of 3.5%, the head of the union SINTTIA told Reuters.
A view of the main entrance of the General Motors' pickup truck plant as workers vote to elect a new union under a labor reform that underpins a new trade deal with Canada and the United States, in Silao, Mexico February 1, 2022. REUTERS/Sergio Maldonado/File Photolargest plant in Mexico is seeking a 19.2% wage increase, citing surging inflation, and the U.S. carmaker has countered with an offer of 3.5%, the head of the union SINTTIA told Reuters.
That would still be much lower than the company's U.S. starting wage of $17.50 an hour.Thewage disparity drove U.S. insistence on tougher labor rules in the United States-Mexico-Canada Agreement , the 2020 trade pact that replaced NAFTA. SINTTIA, the Spanish acronym for the National Independent Union of Automotive Industry Workers, made its 19.2% proposal when talks started last month.
GM is under pressure to keep costs low as it faces off with the first major independent Mexican union to sprout up since the start of the new trade deal. A victory for the 6,300 workers in Silao could spur higher demands at its other Mexico sites and across the auto industry, experts say.
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