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

U.S. declines labor probe at Saint-Gobain in Mexico, applauds new union win

Published 10/27/2022, 06:29 PM
Updated 10/27/2022, 06:35 PM
© Reuters. FILE PHOTO: U.S. Secretary of Labor Marty Walsh speaks during a briefing about the bipartisan infrastructure law at the White House in Washington, U.S., May 16, 2022. REUTERS/Elizabeth Frantz/File Photo

MEXICO CITY (Reuters) - The U.S. Trade Representative has declined to file a complaint with Mexico over alleged worker rights abuses at a Saint-Gobain glass plant, saying on Thursday that the factory's situation improved after workers elected an independent union.

The biggest U.S. labor federation last month asked the U.S. government to open a complaint, the latest in a series of petitions under the United States-Mexico-Canada Agreement (USMCA) trade pact alleging rights violations in Mexico.

A central plank of USMCA, a deal crafted at the behest of the United States, was that it would improve the lot of workers in Mexico and help stem the loss of U.S. manufacturing jobs to its lower-cost neighbor.

Major U.S. unions the AFL-CIO and United Steelworkers accused the Mexican arm of France's Saint-Gobain in the central state of Morelos of unfairly supporting its long-time union over a new, independent rival.

The office of the U.S. Trade Representative (USTR) called the allegations "troubling," but said that during its initial review, workers managed to elect the new union, the Independent Union of Free and Democratic Workers of Saint-Gobain Mexico.

Union leader Joaquin Guzman said he would have preferred the United States to follow through with the case. The union will soon begin negotiating a new collective contract, seeking higher pay.

"We'd like to think the company was acting in good faith because they knew about the possible labor complaint," Guzman said. "I hope this denial of the complaint doesn't change the company's thinking."

Saint-Gobain declined to comment.

U.S. and Mexican officials will monitor the situation, USTR said, noting that Saint-Gobain had issued a statement recognizing the new union.

"The situation at the facility improved for workers," it said in a statement. "Further immediate action on the petition is not needed at this time."

© Reuters. FILE PHOTO: The Saint-Gobain logo is seen on the company headquarters building at the La Defense business district in Courbevoie, outside Paris, France, February 19, 2018. REUTERS/Gonzalo Fuentes/File Photo

AFL-CIO International Director Cathy Feingold said the federation would check that Saint-Gobain bargains in good faith on a new contract, and urged the United States to track the matter.

Since last year, U.S. officials have raised five other complaints under USMCA.

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.