EconomyFinancialLast Minute: Stellantis hopes to settle labor lawsuits in...

Last Minute: Stellantis hopes to settle labor lawsuits in the face of "pressure from Washington"

The Teskid Hierro auto parts plant, owned by automaker Stellantis , expects to resolve a US government complaint filed under the terms of the TMEC trade agreement within days, the company said after approving the entry of an independent union, a decision that workers attributed to pressure from Washington.

Teskid Hierro’s Mexican subsidiary said the complaint regarding possible rights abuses at an auto parts plant in Coahuila is close to being resolved without the need to go to a dispute panel.

The United States Trade Representative (USTR) is negotiating a remediation plan with the Mexican government on the issue under the terms of the 2020 United States-Mexico-Canada (TMEC) Trade Agreement, and will provide more information in the coming days. said a spokesman for the office in response to questions from Reuters.

An old claim

Since 2014, workers at the plant have accused Teskid of colluding with the powerful CTM union to block their election of an independent union, Los Mineros, and closing the case under the terms of the TMEC would mark the end of one of the labor disputes. longest in Mexico.

In recent weeks, Teksid has recognized Los Mineros as the legitimate union at the plant and agreed to rehire 36 workers who said they had been fired in retaliation for supporting the independent labor group.

The unit of the Italian-French automaker would become the fourth company to settle a complaint under the TMEC since the first case arose at a General Motors Co plant in the Mexican state of Guanajuato last year.

“Compliance with the points relating to the complaint has been shown,” Teksid told Reuters on Friday, referring to its 1,500-employee plant that makes iron parts for heavy vehicles.

United States labor authorities filed a complaint under the terms of the T-MEC for alleged rights abuses on June 6, requesting Mexican entities to carry out investigations. On July 11, Teksid and Los Mineros reached an agreement.

Swift action after eight years of conflict illustrated how the TMEC — passed under former President Donald Trump — has helped Mexican workers displace long-established, company-friendly unions in favor of independent groups.

Still, scattered victories have left Mexico’s dominant unions, criticized for being too comfortable with management, ensconced in most factories.

When asked about the US complaint, Stellantis said it supports collective bargaining rights and will follow local laws. The Mexican Ministry of Economy and Labor did not immediately respond to questions about the complaint.

“We want something fair”

Wearing a blue helmet and a new uniform, Alfonso Torres, 45, took up his old job at the factory on July 21, eight years after being fired.

As time passed and other factories refused to hire him, Torres camped outside the plant to demand his job back. Back at his job, he said his younger colleagues reminded him that the fight for a better union was worth it.

“Do you think we can leave them a salary like the one left by the CTM?” he asked, referring to the Confederation of Workers of Mexico union. “We want something fair,” he added.

Torres earns 374 pesos ($18) a day, roughly in line with established starting hourly wages for American Stellantis workers.

The USMCA is intended to reduce the large pay gap between US and Mexican workers, and recent increases achieved by independent unions at General Motors and Panasonic following lawsuits linked to the deal show that they are achieving some of their goals.

Still, wages at other plants have largely stagnated, even with inflation skyrocketing, and experts say local autoworkers lack the kind of massive influence that U.S. unions have long given automakers in the United States. Detroit.

Imelda Jiménez, a fired Teksid worker who is now Los Mineros’ political affairs secretary, said the union will soon demand wage increases, but she was on guard to see how the plant would fare without US scrutiny under the TMEC. .

The plant could have had exports taxed if it was found to be in violation of the TMEC, which has stricter labor rules than the previous agreement, NAFTA.

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