General Motors has agreed to raise pay for workers at the GM Silao plant in Mexico by 10 percent following negotiations with SINTTIA – the local Silao union.
According to a report from Reuters, this salary hike is one of the biggest in the automotive sector in Mexico, and comes as a result of rising inflation rates, and serves to help workers recover purchasing power. “This overcomes the two-digit barrier that has not been reached in the automotive industry in many years,” SINTTIA said in a statement.
It’s worth noting that this increase will go into effect on March 25th.
As a reminder, the establishment of the independent SINTTIA union was a tumultuous one. Workers at the GM Silao plant voted in the union in early 2022, ousting the controversial Miguel Trujillo López union following allegations that it did not campaign on behalf of worker interests. The results of the first 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.
One of the first things the union did was fight for pay raises, and 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. However, GM and SINTTIA eventually agreed to an 8.5 percent increase.
As context, there are approximately 6,500 workers employed at the Silao facility, which builds the Chevy Silverado 1500 and GMC Sierra 1500 light-duty pickup trucks. The 26.5 million square foot facility first opened in 1996 and is GM’s largest manufacturing plant in Mexico.