U.S. says GM Mexican plant workers’ vote shows bargaining benefits
By David Shepardson
WASHINGTON (Reuters) – U.S. Commerce Consultant (USTR) Katherine Tai stated on Friday the vote by Common Motors employees at a pickup truck plant in Mexico to approve a brand new contract “demonstrates the numerous advantages of true collective bargaining.”
This month, Reuters reported GM agreed to an 8.5% wage hike with a brand new, unbiased union at its plant within the central Mexican metropolis of Silao. Tai stated that underneath labor protections of the USMCA commerce deal, “employees not need to tolerate contracts negotiated behind their backs and have the precise to vote on an settlement after it is negotiated.”
Mexico’s federal labor middle stated the contract was permitted by a 87% vote, whereas the labor ministry stated the contract will go into impact in June.
GM stated underneath Mexican regulation it should await an official dedication from the Federal Heart for Conciliation and Labor Registration to deem the method accomplished.
In Might 2021, the USTR invoked powers underneath USMCA and requested Mexico to probe alleged abuses on the Silao plant after an April 2021 union contract vote.
These powers “helped employees get to this vote, and america will proceed to work with Mexico to guard employee rights,” Tai stated.
The take care of SINTTIA additionally marks the primary main increase for the reason that begin of USMCA.
Following a vote intently watched by U.S. officers, SINTTIA this yr turned the primary unbiased union within the GM Silao plant’s historical past, in an early take a look at of USMCA labor guidelines.
The pay deal seems to outstrip others not too long ago struck by unbiased unions in Mexico’s auto sector.
Nissan this yr agreed to spice up wages 6.5%, whereas final yr Volkswagen agreed for a 5.5% increase.
GM gained key modifications to USMCA that allowed it to proceed to construct a whole bunch of hundreds of high-profit pickups in Mexico for export to america yearly.
Underneath NAFTA, Mexican manufacturing facility wages stagnated for greater than twenty years, partly due to a union system that made it laborious for employees to arrange freely.
(Reporting by David Shepardson and Daina Beth Solomon; Modifying by Mark Potter and David Gregorio)
