GM Agrees to 10% Wage Raise at Silao Assembly Plant
Home > Automotive > Article

GM Agrees to 10% Wage Raise at Silao Assembly Plant

Photo by:   Peter H
Share it!
Rodrigo Andrade By Rodrigo Andrade | Journalist & Industry Analyst - Tue, 03/21/2023 - 11:20

Workers at the GM plant in Silao, Mexico, have agreed to a 10% salary increase, one of the biggest wage hikes in the history of the country’s automotive sector. The new deal will be effective as of March 25 and will be valid for one year. 

The deal surpasses last year’s pay raise of 8.5%. According to union representatives, the inflation-adjusted raise, coupled with other benefits, will represent a significant aid in restoring workers’ purchasing power, as inflation stood at 7.62% by the end of February. "This overcomes the two-digit barrier that has not been reached in the automotive industry in many years," says the union in a statement, according to Reuters.

The automaker said it was satisfied with the agreement, saying that it “will benefit our workers.” This movement goes in line with recent developments in the sector, with other automakers also raising wages in accordance with inflation. Nissan Mexicana recently raised wages by 9%, Audi Mexico by 9.4% and Volkswagen Mexico by 9%, as reported by MBN.

GM Silao Stretches Production Stoppage 
The automaker extended its production shutdown at its assembly plant in Mexico until March 20 due to a temporary supply chain issue. GM first announced a production halt from March 4 to 12 due to the same problem. 

The company said it is stepping up its efforts to address this problem and increase collaboration with suppliers, seeking to resume production next week. GM declined to provide additional information on the issue, but stated that it is unrelated to semiconductor chip scarcity, according to Reuters. In January, Paul Jacobson, CFO, GM, said that the company was still experiencing some supply chain and logistics challenges but, overall, things were trending in the right direction.

GM had announced last month that it would pause production at its assembly plant in Fort Wayne, Indiana, which produces Chevrolet Silverado and GMC Sierra pickup trucks, for two weeks starting on March 27 to maintain optimal inventory levels with dealerships. However, the Mexican production pause was not related to those efforts to optimize inventory.

Mónica Garcia, Global Purchase and Supply Chain Director, GM, highlighted during Mexico Automotive Summit 2023 the importance of collaborating with the entire supply chain, as the sector needs to work together to reduce the impact of disruptions. García explained that the sector must boost the use of technologies and processes that reinforce resiliency, transparency and sustainability.

Photo by:   Peter H

You May Like

Most popular

Newsletter