Workers at automaker General Motor (GM)'s Silao plant in Mexico may strike on 25 March following the suspension this week of contract talks between the firm and national independent automotive industry workers' union Sinttia.
GM suspended talks for a week after three weeks of negotiations, Sinttia said on 3 March, adding that the workers will strike on 25 March.
Silao produces 300,000 vehicles/yr, according to Sinttia.
The union originally asked GM for a 20pc pay increase for workers. GM's counteroffer was "far below its real capacity," Sinttia said. It added that the gap between Silao workers and their US counterparts "remains enormous."
GM is "negotiating in good faith, with absolute respect for the union process and its representatives," it told Argus. "Our goal is to maintain a cordial and constructive dialogue, always seeking common ground that allows this process to move forward."
The firm is committed to reaching a "fair and sustainable agreement that benefits our employees and is favorable for all parties involved," it added.
Sinttia said that 90pc of Silao's production goes to the US, leading GM to have its highest market share in the US since 2015.
