Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Mexico, U.S. close VU Manufacturing complaint in fifth USMCA labor probe

Published 09/14/2022, 03:44 PM
Updated 09/14/2022, 07:03 PM

By Daina Beth Solomon

MEXICO CITY (Reuters) -Mexico and the United States have resolved the latest in a series of labor complaints under a regional trade pact, saying on Wednesday that workers at auto-parts plant VU Manufacturing in northern Mexico were able to elect the union of their choice.

U.S. officials in July called for a probe under the 2020 United States-Mexico-Canada Agreement (USMCA), the fifth such case aiming to improve workplace conditions in Mexico, after activists alleged the company interfered in workers' efforts to select their union.

Michigan-based VU Manufacturing, whose factory in the Mexican border city of Piedras Negras produces interior car parts including arm-rests and door upholstery, did not immediately reply to a request for comment.

U.S. labor officials said the Mexican government educated workers and trained management to ensure a fair union election on Aug. 31, including asking the company to issue a statement vowing to stay neutral.

The Mexican government also requested vote observers from Mexico's electoral institute and the United Nations-backed International Labor Organization.

Workers ultimately elected an independent union, La Liga Sindical Obrera Mexicana, which will negotiate the plant's first collective contract, covering some 400 people.

"Workers at Manufacturas VU Auto Components facility now have a union - chosen through a fair election - with whom they are consulting as they prepare for negotiations," U.S. Labor Minister Marty Walsh said in a statement.

Their rights to free association and collective bargaining had previously been denied, the statement added.

© Reuters. Flags of Mexico, United States and Canada are pictured at a security booth at Zaragoza-Ysleta border crossing bridge, in Ciudad Juarez, Mexico January 16, 2020. REUTERS/Jose Luis Gonzalez

Mexico's economy and labor ministries said the peaceful vote ensured workers could elect the group they believed would best represent their interests, and officials would continue monitoring worker rights at the factory.

Previous USMCA labor complaints led to probes at Mexican plants owned by companies including carmakers General Motors (NYSE:GM) and Stellantis.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.