General Motors Mexican Union Demands 19.2% Raise To Combat Inflation

The new independent labor union at General Motors' largest Mexican plant is seeking a 19.2 percent wage increase, citing surging inflation, and the U.S. carmaker has countered with an offer of 3.5 percent, the head of the union SINTTIA told Reuters.

GM would not confirm the percentage of its counter-offer but said its next meeting with the union is Thursday, where it hopes to reach a deal for the plant in the central city of Silao, forestalling a May 31 deadline for workers to strike.

The GM labor negotiations are a high-profile test case for a new trade deal's goal of reducing the vast wage gap between U.S. workers and their Mexican counterparts.

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