EconomyLAST MINUTE: Labor dispute initiated by the United States...

LAST MINUTE: Labor dispute initiated by the United States at the Teksid Hierro plant in Mexico is resolved

The Ministry of Economy (SE) announced this Tuesday that the commercial dispute that the United States initiated due to alleged labor violations at the Teksid Hierro plant in Mexico has been resolved.

The US government initiated the complaint within the framework of the rapid response labor mechanism in specific facilities (MLRR) of the Treaty between Mexico, the United States and Canada (T-MEC).

The Mexican government recognized the union and the company, which reached an agreement on July 11, reported the SE and the Ministry of Labor and Social Welfare (STPS) in a joint statement.

This agreement guarantees the following:

  • The protection of the rights of workers to decide which union best represents their interests
  • Teksid’s recognition of the Trade Union holder of the only valid collective bargaining agreement before the registration authority, the Federal Center for Conciliation and Labor Registration
  • The access of the Union holder of the contract to the installation and the assignment of office spaces
  • The reinstatement of 36 workers, with their respective payment of lost wages at 100%
  • Payment of union dues due

The Office of the United States Trade Representative (USTR) said in a statement that employees at the plant had been denied the rights to choose their union and to bargain collectively.

The facility, which produces auto parts for heavy vehicles, employs about 1,500 workers.

The case was eventually resolved without resorting to an arbitration panel or the imposition of trade sanctions, the statement said.

Teksid said he “cooperated diligently” with US and Mexican officials during the process.

With information from Reuters

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