Stellantis, Daimler Truck agree with Mexico union on pay raise of about 9%

© Reuters. FILE PHOTO: A view shows the logo of Stellantis at the entrance of the company's factory in Hordain, France, July 7, 2021. REUTERS/Pascal Rossignol

MEXICO CITY (Reuters) - Automakers Stellantis and a Mexican unit of Daimler Truck have reached deals with one of Mexico's biggest unions to raise wages this year around 9%, labor authorities said on Tuesday.

The increases, as well as similar raises at three auto parts suppliers, apply to more than 24,000 workers in northern and central Mexico, the Federal Center for Labor Conciliation and Registration (CFCRL) said in a statement.

They are represented by a union that is part of the Confederation of Mexican Workers (CTM), one of Mexico's largest and oldest labor groups.

Stellantis, with more than 15,000 unionized workers across five plants in Coahuila state and three in the State of Mexico, agreed to raise wages 9%.

Daimler Vehiculos Comerciales Mexico, which makes trucks, tractors and buses, agreed to an 8.82% pay increase for 6,440 workers at its Coahuila plant. The company is part of Daimler Truck, which was spun off from Mercedes-Benz Group.

Auto parts producers Adient Mexico Automotriz, part of Adient Plc, and Pinturas y Ensambles de Mexico reached deals for 9.5% pay increases, while Android de Mexico agreed to 8%.

The CTM union reached pay agreements without setting worker strike deadlines, the CFCRL said.

Labor groups in Mexico have been fighting to lift wages above inflation and recover lost purchasing power, including independent unions that secured increases for 10% at General Motors (NYSE:GM), 9.4% at Audi and 9% at Nissan Motor Co Ltd.