Union Battle Unfolds at GM Silao PlantBy Antonio Gozain | Wed, 02/02/2022 - 16:25
Mexico’s labor democratic life could experience an inflection point, as more than 6,000 General Motors workers in Silao, Guanajuato, are voting to elect a new union. The Independent Syndicate of National Workers (SINTTIA) is aiming to beat the Confederation of Mexican Workers (CTM), which has held the contract for 25 years. Meanwhile, Kavak announced a US$103.92 million investment to continue its expansion plans in Brazil.
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GM Mexico Union Vote Begins with Key Labor Implications
Nearly 6,300 General Motors workers in Silao, Guanajuato, will elect a new union this week as SINTTIA aims to beat CTM, which has held the contract for 25 years.
The vote is one of the first under USMCA’s labor reform and aims to “help improve pay by breaking the grip of unions that critics say signed deals with companies behind workers' backs,” reported Reuters. In Sept. 2021, CTM lost against the Autonomous Confederation of Workers and Employees (CATEM) in Nissan’s Aguascalientes plant. The voting represented an “inflection point” in Mexico’s labor democratic life, said Pedro Haces, General Secretary, CATEM.
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New vehicle financing is slowly recovering but remains far from pre-pandemic levels due to Mexico’s economic stagnation and the legalization of “chocolate” cars, impacting sales across the country, said industry experts.
Kavak Continues Expanding in Brazil
Through investments in Sao Paulo and Rio de Janeiro, Kavak has shifted gears to make Brazil its primary targeted market in the face of growing crises in the Mexican used-vehicle sales industry. The platform for used-car sales announced a US$103.92 million investment to expand to Rio de Janeiro in the coming months.
With the newest investment, Kavak transitioned towards making Brazil its targeted main market by the end of 2022. Through a press release, the company stated its goals of offering over 4,000 vehicles for purchase by the end of the year and to launch 11 new support facilities during the coming months.