GM Silao Workers Win 15% Pay Deal, Avoid Strike

The Sindicato Independiente Nacional de Trabajadoras y Trabajadores de la Industria Automotriz (SINTTIA) reached an agreement with General Motors establishing a 15% total compensation increase at its Silao plant for the 2026–2028 contract period. The deal includes a 10% direct wage increase, a 1% raise scheduled for October and an additional 1% allocated to specific job categories in December. The agreement followed extended negotiations that required postponing a strike deadline to April 15, allowing time for worker consultation and review before any labor action.

SINTTIA said the negotiations took place under “a context of high complexity,” requiring a delay to ensure an orderly and democratic process. The union said the extension will allow workers to review the agreement before voting, describing the process as necessary to enable a “conscious vote.” During this phase, the union will present the terms of the agreement to employees to support informed decision-making. 

Beyond wages, the agreement includes provisions related to benefits and working conditions. These measures include free transportation, an increase in the employee savings fund and updates to bonus structures. The union said the outcome reflects “a firm and strategic negotiation backed by worker unity.” The contract will be submitted to a vote on April 9 and 10, pending confirmation by the Federal Center for Conciliation and Labor Registration. Workers will decide through a direct and secret ballot, in line with Mexico’s 2019 labor reform. 

The agreement follows a prior decision by General Motors and SINTTIA to delay a strike by three weeks, avoiding an immediate halt in operations scheduled for March 25. That step transferred the outcome to a vote by nearly 7,000 workers and involved federal labor authorities overseeing compliance. The consultation process aligns with labor provisions under the United States-Mexico-Canada Agreement (USMCA), which require transparency and worker participation in contract approvals.

USMCA Mechanisms Reshape Labor Relations in Mexico

The Silao case reflects broader structural changes in Mexico’s labor framework under USMCA. The agreement has introduced enforcement tools that allow cross-border review of labor practices, particularly in export-oriented sectors such as automotive manufacturing. These mechanisms have increased oversight of union representation, voting processes and contract legitimacy, linking compliance directly to trade benefits across North America.

The plant became a reference point for USMCA enforcement following a labor complaint filed by the United States in 2021. The case led to a review under the Rapid Response Labor Mechanism, which addresses alleged denials of worker rights. The process began after a flawed contract legitimization vote held on April 20–21, 2021, was rejected by Mexican authorities due to “serious irregularities,” prompting the US government to request a formal investigation. 

In June 2021, both governments agreed on a remediation plan requiring a new vote under strict conditions, including oversight by international observers and Mexican electoral authorities to ensure a “free and secret vote.” A new vote was held in Aug. 2021, in which 3,214 workers rejected the existing contract versus 2,623 in favor, effectively terminating the agreement. 

The case concluded with US authorities declaring the remediation successful, followed by a February  2022 election in which SINTTIA won union representation with 4,192 votes. A new collective agreement was approved in May 2022, including an 8.5% wage increase.

At BMW’s plant in San Luis Potosi, workers similarly secured an 8% wage increase and a 0.5% annual bonus following negotiations that also required federal intervention.