General Motors (GM) made major progress in wage negotiations with a new independent union representing thousands of workers at a plant in central Mexico, the auto giant told Reuters on Thursday.
Reuters reported this week that the National Independent Union of Workers in the Automotive Industry (SYNTHIA) initially proposed an increase of 19.2%, to which GM responded with an offer of 3.5%.
The talks are a high-profile test of a revamped North American trade deal that seeks to close the wide gap between loose Americans and Mexicans. If SINTTIA wins a big raise for workers at Silao, in Guanajuato state, the victory could lead to similar lawsuits at other companies, experts said.
The meeting was very productive, both parties showed the commitment we have for the workers of GM Silao,” the company said in a statement to Reuters.
General Motors did not address Thursday what proposals were under discussion, but did say talks will resume on May 5 in an effort to reach an agreement soon.
Hector of the Cavegeneral coordinator of the worker defense organization CILAS, and adviser to SINTTIA, said that the company adopted a “less aggressive” position and that the talks advanced, although he refused to discuss specific salary proposals.
SINTTIA and the US automaker began talks last month after employees expelled a long-standing union and elected an independent worker-led group, one of the first such votes under the trade agreement between Canada, the United States and the United States. Mexico (USMCA).
Provisions of the 2020 deal, which replaced NAFTA, were intended to help Mexican workers choose unions they believe will best fight for their interests, breaking the grip of pro-business groups.
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