General Motors agrees 8.5% raise with Mexico union

General Motors has agreed to an 8.5% wage raise with a new, independent union SINTTIA at its pick-up truck plant in Silao, Mexico.

The deal with union SINTTIA is the first major raise since the start of a new trade deal, the United States-Mexico-Canada Agreement (USMCA), which seeks to decrease the vast wage gap between the U.S. and Mexican workers.

SINTTIA said together with wages, the deal comprises bigger bonuses, a 14% boost in grocery vouchers, and a mandatory day off on Christmas Eve.

The new contract also stipulates the automaker and the union will form working groups to negotiate work schedules.

The contract is good for two years, although salaries will be reviewed in a year, said Alejandra Morales, SINTTIA’s secretary general.

GM hasn’t discussed the details of the contract.

The workers’ vote to approve the deal is yet to happen later this month.