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.