EconomyFinancialStellantis Mexico in the magnifying glass of the United...

Stellantis Mexico in the magnifying glass of the United States for labor complaint

The US government on Monday asked Mexico to investigate alleged violations of workers’ rights at a local auto parts plant of Italian-French automaker Stellantis, the fourth such investigation under the terms of the North American trade agreement.

The request from the United States for Mexico to investigate possible abuses by Teksid Hierro de México, in the northern and border state of Coahuila, is made within the framework of the TMEC, of 2020, which replaced NAFTA, and which aims to improve conditions in places of Mexican work.

Companies have closely watched these early cases to see how stricter labor standards are enforced under the deal, which says factories that violate workers’ rights could lose their duty-free status on exports.

Stellantis, the world’s fourth-largest automaker, did not immediately respond to a request for comment. The company has already said it respects collective bargaining rights. Since 2014, Teksid – which employs nearly 1,500 people and makes iron castings for heavy vehicles – has been embroiled in a union dispute that workers say has prevented them from being represented by the Sindicato Nacional de Mineros collective and has led to dismissals. of employees.

The labor federation AFL-CIO and the United Auto Workers union, which represents US workers at Stellantis, along with the Mexican National Miners’ Union, have pointed out the possible violations, the office of the United States Trade Representative (USTR for its acronym) detailed. in English) in a statement.

US Secretary of Labor Marty Walsh added that Washington intended to work with its Mexican counterparts and Teksid “to ensure that workers can choose their union representatives freely and without interference.”

The Latin American country’s Ministry of Economy said later that it received the request and that it has 10 days to “notify whether or not it will carry out the review.” “The Government of Mexico reiterates its commitment to the effective application of the provisions established in the T-MEC and in national legislation,” it said in a statement.

Stellantis, formed from the merger of Peugeot maker PSA and Fiat Chrysler, runs seven other plants in Mexico and last year produced more than 400,000 vehicles in the country.

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The US evaluates a labor investigation at a Stellantis plant in Coahuila

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