By David Shepardson

WASHINGTON, (Reuters) – U.S. Trade Representative Katherine Tai stated that Friday’s vote of General Motors workers in Mexico for a new contract approved by General Motors (NYSE) “demonstrates the substantial benefits of collective bargaining.”

Reuters reports that GM has agreed to a 8.5% wage increase with a union independent at its Silao plant, in central Mexico. Tai stated that workers no longer need to accept contracts being negotiated behind them and can vote on any agreement once it has been negotiated under the labor protections provided by the USMCA trade deals.

Mexico’s federal labor centre said the agreement was passed by 87% of Mexicans, and the labor ministry claimed that it will be in effect starting June.

GM stated that it had to wait for a determination by the Federal Center for Conciliation and Labor Registration in Mexico before it could deem the process complete.

After the April 2021 vote on the union contract, USTR invoked the USMCA powers and requested Mexico investigate alleged violations at Silao.

Tai stated that these powers had “helped workers to vote and that the United States would continue to work alongside Mexico to ensure worker rights.”

SINTTIA is also pleased to announce the largest raise in USMCA history.

After a closely monitored vote by U.S. officials SINTTIA became this year the first independent labor union in the GM Silao plant’s past. This was an early test of USMCA labor regulations.

It appears that the pay agreement is more favorable than those recently reached in Mexico by independent unions within Mexico’s automobile sector.

This year, Nissan (OTC) will increase wages by 6.5% while Volkswagen (ETR) last year approved a 5.5% rise.

GM received key USMCA amendments that permitted it to continue building high-profit pickups in Mexico to export to the United States each year.

Mexico’s factory wages have stagnated under NAFTA for over two decades. This is partly due to a union system that makes it difficult for workers and organizers to freely organize.