U.S. asks Mexico to probe whether Stellantis parts plant abused labor rights & More News Here

MEXICO CITY/WASHINGTON June 6 (Reuters) – The United States has requested Mexico to probe alleged employee rights violations at an auto-parts plant owned by Italian-French carmaker Stellantis, the fourth such criticism beneath a revised commerce deal, U.S. officers stated on Monday.

The U.S. request for Mexico to look at attainable abuses at Teksid Hierro de Mexico within the northern border state of Coahuila comes beneath the 2020 United States-Mexico-Canada Agreement (USMCA).

Teksid, which employs almost 1,500 folks and makes iron castings for heavy autos, has been embroiled in a union dispute since 2014. Workers say the corporate has blocked them from being represented by the group of their alternative, the Miners Union, and that it dismissed staff who backed the group.

The U.S. Trade Representative’s (USTR) workplace stated within the request it was involved staff had been denied collective bargaining rights in reference to an “invalid” contract with the Confederation of Mexican Workers (CTM), considered one of Mexico’s strongest unions, that had been registered with state authorities.

The workplace requested Mexico to examine if efforts had been made, together with threats and incentives, to encourage backing for CTM or to dissuade assist for the Miners Union.

Labor disputes in Mexico have lengthy featured intimidation techniques by highly effective unions cozier with employers and governments than staff. Under the USMCA, the commerce pact that changed NAFTA, factories that violate employee rights might lose their tariff-free standing.

Companies have been watching how the more durable labor guidelines will play out.

Stellantis (STLA.MI), the world’s fourth-largest auto group which fashioned from the merger of Peugeot maker PSA and Fiat Chrysler, didn’t reply to a request for remark. It beforehand stated it respects collective-bargaining rights.

The United Auto Workers union, which represents U.S. Stellantis staff, together with the AFL-CIO labor federation and the Miners Union, flagged the potential violations, the USTR’s workplace stated.

Teksid, CTM and the native Conciliation and Arbitration Board must be included within the assessment, it added.

CTM didn’t instantly reply to a request for remark. The union’s chief in Coahuila, Tereso Medina, lately informed Mexican newspaper El Economista the union would abide by the USMCA and that the battle must be resolved with a staff’ vote. Mexico’s federal labor middle in May stated the Miners Union held the one legitimate contract.

Mexico’s Economy Ministry stated it could determine inside 10 days whether to settle for the U.S. request.

U.S. officers beforehand opened labor inquiries into U.S. automaker General Motors, U.S.-owned manufacturing facility Tridonex and Japan’s Panasonic. learn extra

U.S. Representative Bill Pasrell and several other fellow Democratic lawmakers counseled the brand new criticism and urged Stellantis to cooperate with U.S. and Mexican officers so staff can have “democratic representation.”

Stellantis runs seven different crops in Mexico, the place it final 12 months produced greater than 400,000 autos.

Reporting by Daina Beth Solomon in Mexico City and David Shepardson in Washington; Editing by Chris Reese, Alistair Bell and David Gregorio

Our Standards: The Thomson Reuters Trust Principles.

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