GM workers in Mexico reject union in first test of trade pact
Vote is a defeat for one of the most powerful unions in Mexico and is the first test of labour rules under accord that replaced Nafta
19 August 2021 - 21:05
byDaina Beth Solomon
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Workers sit outside the General Motors plant in Silao as its employees vote on whether to reject or keep the collective bargaining agreement, marking the first major test of labour rules under the US-Mexico-Canada Agreement, in Silao, Mexico, August 17 2021. Picture: REUTERS/SERGIO MALDONADO
Mexico City — Workers at a General Motors (GM) truck plant in central Mexico have voted to scrap their collective contract, opening the door for them to oust one of Mexico’s largest labour organisations as their union under a new trade deal.
The vote, with safeguards agreed upon by Mexico and the US to ensure a fair vote, was the first test of labour rules under an accord that replaced the 1994 North American Free Trade Agreement (Nafta).
The outcome marks a defeat for one of the most powerful unions in Mexico while representing an opening for workers to freely choose independent groups they feel will best fight for their interests.
An initial vote in April was suspended after Mexico’s labour ministry found irregularities in the process, prompting the US to lodge the first complaint under the labour enforcement mechanism of the US-Mexico-Canada Agreement (USMCA), which took effect in 2020.
The unionised workers will keep the same terms for pay and benefits as they seek new representation or create a union from scratch. Choosing a new union will require another vote, in which the current union could also vie to take back the contract.
Of 5,876 GM employees who cast ballots in the vote at the plant in the city of Silao, 3,214 workers rejected the bargaining agreement while 2,623 workers voted to keep it, the labour ministry said in a statement.
Many workers who campaigned for the “no” vote said their current union did not fight hard enough for better salaries at the plant that produces thousands of profitable trucks a year.
The ballot count was led by the plant’s Miguel Trujillo Lopez union — part of the Confederation of Mexican Workers (CTM) — alongside observers from the labour ministry, Mexico’s National Electoral Institute (INE) and the International Labour Organization (ILO).
Neither the union nor GM immediately replied to requests for comment.
The United Auto Workers (UAW) union, which represents thousands of GM’s US workers, said the vote marked a win on both sides of the border.
“For UAW members this will lead to a fairer playing field by lifting wages and benefits in countries like Mexico,” it said in a statement.
Unifor, Canada’s largest private sector union, said the vote set an example of what USMCA had aimed to achieve by giving workers a voice.
Mexico’s labour ministry said the vote took place “without incident” and would help set a precedent for best practices.
Such votes are required at unionised workplaces across Mexico under a labour reform that underpins USMCA labour rules and is geared at eliminating so-called sweetheart contracts between business-friendly unions and companies.
GM workers and labour activists hailed the outcome, saying it could inspire workers at other plants in the auto industry and beyond to follow suit by ousting unions that have long held power.
“For the first time, we could have workers deciding and discussing their work futures, their work conditions,” said Willebaldo Gomez, a researcher at Mexican labour rights group CILAS.
Still, the GM vote was only a first step on what could be a long path for workers to establish a new union.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
GM workers in Mexico reject union in first test of trade pact
Vote is a defeat for one of the most powerful unions in Mexico and is the first test of labour rules under accord that replaced Nafta
Mexico City — Workers at a General Motors (GM) truck plant in central Mexico have voted to scrap their collective contract, opening the door for them to oust one of Mexico’s largest labour organisations as their union under a new trade deal.
The vote, with safeguards agreed upon by Mexico and the US to ensure a fair vote, was the first test of labour rules under an accord that replaced the 1994 North American Free Trade Agreement (Nafta).
The outcome marks a defeat for one of the most powerful unions in Mexico while representing an opening for workers to freely choose independent groups they feel will best fight for their interests.
An initial vote in April was suspended after Mexico’s labour ministry found irregularities in the process, prompting the US to lodge the first complaint under the labour enforcement mechanism of the US-Mexico-Canada Agreement (USMCA), which took effect in 2020.
The unionised workers will keep the same terms for pay and benefits as they seek new representation or create a union from scratch. Choosing a new union will require another vote, in which the current union could also vie to take back the contract.
Of 5,876 GM employees who cast ballots in the vote at the plant in the city of Silao, 3,214 workers rejected the bargaining agreement while 2,623 workers voted to keep it, the labour ministry said in a statement.
Many workers who campaigned for the “no” vote said their current union did not fight hard enough for better salaries at the plant that produces thousands of profitable trucks a year.
The ballot count was led by the plant’s Miguel Trujillo Lopez union — part of the Confederation of Mexican Workers (CTM) — alongside observers from the labour ministry, Mexico’s National Electoral Institute (INE) and the International Labour Organization (ILO).
Neither the union nor GM immediately replied to requests for comment.
The United Auto Workers (UAW) union, which represents thousands of GM’s US workers, said the vote marked a win on both sides of the border.
“For UAW members this will lead to a fairer playing field by lifting wages and benefits in countries like Mexico,” it said in a statement.
Unifor, Canada’s largest private sector union, said the vote set an example of what USMCA had aimed to achieve by giving workers a voice.
Mexico’s labour ministry said the vote took place “without incident” and would help set a precedent for best practices.
Such votes are required at unionised workplaces across Mexico under a labour reform that underpins USMCA labour rules and is geared at eliminating so-called sweetheart contracts between business-friendly unions and companies.
GM workers and labour activists hailed the outcome, saying it could inspire workers at other plants in the auto industry and beyond to follow suit by ousting unions that have long held power.
“For the first time, we could have workers deciding and discussing their work futures, their work conditions,” said Willebaldo Gomez, a researcher at Mexican labour rights group CILAS.
Still, the GM vote was only a first step on what could be a long path for workers to establish a new union.
Reuters
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