U.S., Mexico resolve Panasonic auto parts plant labor dispute

WASHINGTON, July 14 (Reuters) – The United States and Mexico announced a resolution to a dispute at a Panasonic car areas plant in Mexico on Thursday, with personnel receiving an earlier mentioned-inflation pay increase soon after the organization turned down an agreement with a union that lacked lawful bargaining authority.

The arrangement associated the Panasonic Automotive Methods facility in the northern border city of Reynosa, Mexico, “where workers were beforehand denied their flexibility of affiliation and collective bargaining rights,” the U.S. Trade Agent explained(USTR) reported in a statement.

Workers are established to get a 9.5% salary enhance below a deal negotiated by a not too long ago elected impartial union, coming as Mexican annual inflation is jogging at a 21-12 months high of virtually 8.%. browse a lot more

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The arrangement marks the next time that a scenario scrutinized under the two-year-old United States-Mexico-Canada Agreement (USMCA), has served workers reach wage will increase right after bringing in an impartial union of their decision.

Personnel at Standard Motors (GM.N) in the central Mexican metropolis of Silao scored an 8.5% raise in a negotiation between the firm and their new union previously this yr. study a lot more

In addition to scrapping a bargaining arrangement with a union that lacked authority, the Panasonic plant agreed to remove the union, reimburse staff for union dues deducted from paychecks, and identify an independent union, SNITIS, USTR claimed. Panasonic also employed again 19 employees who had been dismissed immediately after what they said was a reprisal for backing SNITIS.

“We are pleased with the simple fact that USTR has terminated the proceeding underneath the swift-response labor system of the USMCA, and that the United States and Mexico are in arrangement that there is no ongoing denial of our employees’ legal rights,” Panasonic North The united states stated in emailed remarks.

Panasonic said it completely supports its employees’ legal rights of flexibility of association and collective bargaining.

Mexico’s Labor Ministry claimed all of the challenges raised in the investigation experienced been settled, and that it would watch the plant to make sure the re-hired staff could freely assist the union of their option.

U.S. Trade Agent Katherine Tai in Might requested the Mexican govt to assessment the make a difference under the USMCA’s Fast Reaction Labor Mechanism.

“Today’s announcement is however another case in point of the Biden-Harris Administration’s commitment to defending the legal rights of personnel, like those that reside beyond our borders,” Tai explained in the statement.

The incident marked the 3rd U.S. labor criticism under a new trade offer that aims to increase workplace circumstances in Mexico.

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Reporting by Doina Chiacu in Washington, Daina Beth Solomon in Mexico Metropolis Editing by Leslie Adler, Nick Zieminski and Diane Craft

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