Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

US seeks labor rights probe at Goodyear Tire in Mexico

Published 05/22/2023, 11:32 AM
Updated 05/22/2023, 04:11 PM
© Reuters. The Goodyear logo is seen at a tire workshop in Caracas, Venezuela December 10, 2018. REUTERS/Manaure Quintero

By Daina Beth Solomon and David Lawder

WASHINGTON/MEXICO CITY (Reuters) - U.S. labor officials on Monday said they have asked Mexico to investigate alleged worker rights abuses at a Goodyear Tire & Rubber Co plant in Mexico in the latest "rapid response" probe under North American trade rules.

The complaint from the U.S. Trade Representative's office (USTR) comes after independent Mexican union La Liga petitioned the U.S. government to open a case, arguing Goodyear employees in the central state of San Luis Potosi were offered fewer benefits than available to other workers in the rubber sector in Mexico.

Since the U.S.-Mexico-Canada agreement on trade, known as the USMCA, took effect in 2020, USTR has launched a number of labor rights complaints against automotive facilities in Mexico, including cases that have paved the way for new unions to secure better pay and benefits.

Goodyear workers in San Luis Potosi voted this month to reject their union contract, dealing a blow to the Confederation of Mexican Workers (CTM), one of Mexico's biggest labor organizations.

The union had faced accusations from Mexican labor authorities of having initially attempted to meddle in the process by stealing ballots.

Gonzalo Soto, 25, who has worked five years making Goodyear tires, said newly formed union La Liga will now seek to take over labor representation, aiming to ensure workers can access the full benefits promised by law to workers in Mexico's rubber industry.

Soto said he hoped the U.S. scrutiny would ensure fair treatment by his employer and rival unions, at a time when workers could be vulnerable to intimidation and threats.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

"More than anything, it makes the workers' voices heard," he said. "We're on guard for any situation."

Thea Lee, deputy undersecretary for international affairs at the U.S. Labor Department, in a statement called on Goodyear to treat workers fairly.

Goodyear said the plant's employee attrition is low and wages are competitive. The tiremaker added it will work with U.S. and Mexican authorities to ensure workers can freely choose their union.

Mexican authorities did not immediately respond to a request for comment.

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.