The previous vote at the General Motors plant in Silao in April was cancelled after Mexico discovered irregularities in the elections held by the union, a branch of the country’s largest Syndicate Mexican Workers’ Federation (CTM).
After the United States disputed the factory’s conditions, workers at the General Motors truck plant in Mexico voted to cancel their union contract, a historic victory for the North American Free Trade Agreement.
Employees at GM’s large factory in Silao, Guanajuato terminated their contract with 3,214 votes in favor and 2,623 votes against, allowing them to choose a new union. In Mexico, for decades, large labor federations have reached agreements with companies that keep workers low wages, which has angered Mexico’s North American partners.
This vote became an important test case for new labor provisions under the revised North American Trade Agreement (known as USMCA), and the United States cited the agreement to submit labor disputes. As one of the three general-purpose plants that produce high-margin pickup trucks, the plant is critical to the company’s balance sheet.
As part of the USMCA, the government of President Andres Manuel Lopez Obrador pushed for the passage of a law in 2019 that requires unions to vote by secret Way to vote to verify their labor contract. This is to expel unions that illegally represent workers. Of the 1,504 elections for factories nationwide, only 6 ended in contract termination.
After Mexico discovered irregularities in elections held by the union, a vote held in April at a General Motors plant was cancelled. The union is a branch of the largest syndicated CTM in Mexico.
This led to U.S. trade director Katherine Tai (Katherine Tai) asking Mexico to investigate labor issues at the Silao General Motors truck plant, fearing that workers’ rights would be deprived, which has triggered a thorny bilateral issue. This is the first time the strategy has been used in a trade agreement between the two countries and Canada.
Representatives from the Mexican Ministry of Labor, the Electoral Institute, and the International Labor Organization monitored the voting at the scene, which took place on Tuesday and Wednesday.
The factory employs more than 6,000 union workers and is located approximately 215 miles (350 kilometers) northwest of Mexico City.