U.S. says GM Mexican plant workers' vote shows bargaining benefits & More News Here

Workers arrive for a shift on the GM truck meeting plant amid the outbreak of the coronavirus illness (COVID-19), in Silao, Mexico May 22, 2020. REUTERS/Sergio Maldonado/File Photo

WASHINGTON, May 31 (Reuters) – U.S. Trade Representative (USTR) Katherine Tai stated on Friday the vote by General Motors (GM.N) employees at a pickup truck plant in Mexico to approve a brand new contract “demonstrates the significant benefits 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 below labor protections of the USMCA commerce deal, “workers no longer have to tolerate contracts negotiated behind their backs and have the right to vote on an agreement after it’s negotiated.”

Mexico’s federal labor middle stated the contract was authorised by a 87% vote, whereas the labor ministry stated the contract will go into impact in June.

GM stated below Mexican legislation it should await an official dedication from the Federal Center for Conciliation and Labor Registration to deem the method accomplished.

In May 2021, the USTR invoked powers below USMCA and requested Mexico to probe alleged abuses on the Silao plant after an April 2021 union contract vote.

Those powers “helped workers get to this vote, and the United States will continue to work with Mexico to protect worker rights,” Tai stated.

The cope with SINTTIA additionally marks the primary main elevate because the begin of USMCA.

Following a vote carefully watched by U.S. officers, SINTTIA this 12 months grew to become the primary unbiased union within the GM Silao plant’s historical past, in an early check of USMCA labor guidelines. learn extra

The pay deal seems to outstrip others not too long ago struck by unbiased unions in Mexico’s auto sector.

Nissan (7201.T) this 12 months agreed to spice up wages 6.5%, whereas final 12 months Volkswagen (VOWG_p.DE) agreed for a 5.5% elevate.

GM gained key modifications to USMCA that allowed it to proceed to construct a whole bunch of 1000’s of high-profit pickups in Mexico for export to the United States yearly.

Under NAFTA, Mexican manufacturing unit wages stagnated for greater than twenty years, partly due to a union system that made it exhausting for employees to prepare freely.

Reporting by David Shepardson and Daina Beth Solomon
Editing by Mark Potter and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

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