Workers at the General Motors factory in Silao, Mexico, successfully negotiated record wage increases averaging 10% despite company threats about tariffs. The new wage scale, which eliminated the lowest tier, resulted in a minimum starting wage rise to about $3 per hour. This achievement not only positioned GM Silao workers among the highest earners in the Mexican auto industry, but also significantly lifted many above the poverty line. The union's fight reflects ongoing labor strength amid economic pressures, with potential long-term parity with U.S. wages.
Workers in tiers making up 60 percent of the workforce will receive a raise of 10.25%; the other 40 percent will see a 9.25 percent increase.
The new wage scale lifts two-thirds of the workforce above Mexico's family poverty line, and well above Mexico's minimum wage of about $1.71 per hour.
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