The United States and Mexico have resolved a labor dispute at a Panasonic plant in Reynosa, Tamaulipas, with the company saying it would withdraw from an agreement with a union without legal bargaining authority, the Office of the US Trade Representative (USTR) said on Thursday.
The head of the USTR, Katherine Tai, asked the Mexican authorities in May to review the matter under a rapid response mechanism of the North American trade agreement, TMEC, the third labor complaint of the neighboring nation within the same pact that seeks to improve the working conditions in Mexico.
The settlement involved a Panasonic Automotive Systems facility in the US border city, “where workers were previously denied their freedom of association and collective bargaining rights,” the USTR said in a statement.
In addition to scrapping bargaining with the union that lacked authority, the Panasonic plant agreed to eliminate it, recognize an independent union, SNITIS, and reimburse workers for union dues deducted from paychecks and unpaid wages for a strike. in the factory.
The company previously said it respected the rights to free association and collective bargaining and did not believe they had been denied.
The Mexican Ministry of Labor said that all issues raised in the investigation had been resolved and that it would monitor the plant to ensure that rehired employees could freely support the union of their choice.
“Today’s announcement is yet another example of the Biden-Harris Administration’s commitment to defending the rights of workers, including those who live beyond our borders,” US Trade Representative Kaherine Tai said in the statement. .
In June, Panasonic and the newly elected union, SNITIS, agreed to a 9.5% wage increase as part of a new contract that will be implemented if approved in a workers’ vote.
