GM reached a deal with the newly installed independent union at its Silao plant in Mexico this week, with the automaker agreeing to grant employees raises and benefits that exceed the current inflation rate.
The independent SINTTIA union did not provide additional details on the new contract, Reuters reports, and it’s currently unclear what kind of raises and benefits it managed to secure for its members. The publication points out that Mexican inflation rose 7.68 percent year-over-year in April.
“The new collective contract improves labor conditions on all levels,” the union said in a statement provided to Reuters. “The agreed deal includes an economic package of salary increases and economic benefits that is above inflation.”
The union had initially targeted wage increases of 19.2 percent, which would have brought the hourly wage at the facility to 77.15 pesos ($3.81) an hour. GM countered this offer with a proposed 3.5 percent increase, which would have been less than half the inflation rate.
Workers at the GM Silao plant voted in the independent SINTTIA union earlier this year, ousting the controversial Miguel Trujillo López union following accusations that it did not campaign on behalf of worker interests. The results of this initial vote were called into question after Mexican labor officials discovered irregularities in the voting process that would have swayed the results in favor of the existing union, including discarded ballots. A second vote was then arranged with help from American labor officials via the special provisions in the United States-Mexico-Canada Agreement, which resulted in a victory for SINTTIA.
Approximately 6,500 workers are employed at the GM Silao complex, which builds the Chevy Silverado 1500 and GMC Sierra 1500 light-duty trucks. The 26.5 million square foot facility first opened in 1996 and is GM’s largest manufacturing plant in Mexico.
Subscribe to GM Authority for more GM production news, GM union news and around-the-clock GM news coverage.
Comments
No joke, 2 years ago my company told myself and others that they do not recognize inflation as being a factor when raises and annual increases are considered. I’ve been with them 5 years and every year they break record profits. This year they kept their mouths shut about inflation but action spoke louder and ‘raises’ were “generous” at 3.0-3.5%, but bonuses were almost exactly less the amount of the annualized raise increase versus the bonus amount from the year prior.. so they break even at end of year lol.
Starting my new job June 6 with +20% salary, less hours, DB pension, and my current company says they are extremely disappointed with my decision – I bet you are!
So, buying that new GM truck?
Keeping a keen eye on that 2023 3.0 duramax update, and a bigger eye on financing rates and incentives
Americans have been working harder than ever. It shows! American companies have been posting the biggest profits in years, even after taking info account inflation over years. Yet, McDonald’s was once fighting over raising wages to $15/hr. Now, that can’t find anyone to work for $15/hr.
The argument isn’t against Fast Food workers making $15/hr; but rather why American Companies can’t play all of their employees better, excluding executives. Everyone in America deserves a pay raise. CEO’s are the FEW; Not the many.
Speak up America.
my company gave out a 5% pay cut for the shutdown. several of our best people went and found new jobs. next thing i know, everyone is getting that 5% back and a 1250$ bonus. It was followed up with a 5% cost of living expense in 2021. I bet they’ll try for a 1-2% increase of living expense for this year, as its a slowing economy, but get up and change jobs. That puts fear in the eyes of any company….yes im looking as well, and i could make 30% more tomorrow if i wanted to, but im not a big fan of moving to Huston or Alaska.
Don’t forget that during the peak of the Pandemic, McDonald’s in some areas was more than willing to pay $21 an hour just to sustain a good percentage of employees and to prevent reduced service or even reduced hours to it’s customers, so McDonald’s at that point truly exposed itself based on what they swore on what they could not do for employees when it comes to a major pay raise.
I love a good “Quiting and finding a new job” story.
What is a DB pension? What industry are you in?
Defined benefits, as opposed to defined contribution. I know the question wasn’t for me but I work in the retirement plan industry.
Defined benefit pension, which also accounts for future inflation.
Basically it’s 2% for every year of service of my best 60 months (5 years) of salary averaged. Work 25 years X 2% = 50%, work 35 years X 2% = 70% of best 5 years of salary. Simple example is an average annual income over 60 months is $100,000, work 35 years, get 70% so $70,000 payout per year when retired.
I’m in civil engineering, land development.
Corporate greed at it’s finest.
Won’t fix bad transmissions, bad lifters, etc.
Workers getting better pay is corporate greed?
So far, not one comment on $3.81 per hour pay to build that $70,000 truck….
Much less that 3.81/hour is what they’re fighting for–so what they get now is even less.