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GM agrees to hike wages 8.5% at major Mexico plant, union says -Breaking

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© Reuters. FILEPHOTO: This view shows the entrance to the General Motors pickup truck plant. Workers vote in an election for a union as part of a labor reform. The new deal is based on a trade agreement with Canada and the United States. It was held in Silao Mexico, February 1, 2022. REUTERS/Sergi

By Daina Beth Solomon

MEXICO CITY (Reuters: U.S. automaker General Motors has agreed to increase wages by 8.5% under a new collective agreement for its Silao production center in central Mexico, according to the new union SINTTIA.

The first election under the United States-Mexico-Canada Agreement, which seeks reduce the large wage gap between U.S.-Mexican workers, saw SINTTIA become the independent union.

SINTTIA stated that the agreement also includes improved benefits such as vacation time, additional bonuses and grocery coupons.

GM did not comment on details of the agreement prior to workers voting to approve it. This vote is scheduled to be held later this month.

SINTTIA had advocated for inflation increases, which were accelerated to 7.68% by Mexico in April. Initially, the group proposed a 19.2% increase. GM responded with a 3.5% offer.

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