WASHINGTON – The Biden government on Wednesday asked Mexico to investigate whether there have been labor violations at a General Motors plant in the country. This is an important step in using a new labor enforcement tool in the revised North American trade agreement.
The Mexican government said later that day it would begin a review as requested.
The Biden administration moved to review the novel “rapid response” mechanism in the United States-Mexico-Canada Agreement, which replaced the North American Free Trade Agreement and came into force last summer. The mechanism allows penalties to be imposed on a specific factory for violating workers’ rights to freedom of association and collective bargaining.
The government “received information indicative of serious labor rights violations” at the GM facility in Silao, central Guanajuato, in connection with a recent vote on its collective agreement, the United States sales representative’s office said.
The vote was canceled last month on allegations that the union at the facility had tampered with it, according to news reports. The Mexican Ministry of Labor said Tuesday that it had found “serious irregularities” in the vote and ordered the vote to take place again within 30 days.
The updated North American trade agreement called for Mexico to overhaul its labor system, and the country revised its labor laws in 2019. Bogus collective bargaining agreements, so-called protection agreements, that are made with employer-dominated unions and that have a shortage of workers are widespread Country. As part of a new legitimation process, the unions hold votes for workers to confirm existing agreements.
In a statement, Katherine Tai, the US trade representative, said the request for a review “shows the Biden Harris government’s serious commitment to workers and worker-centered trade policies.”
In business today
Updated
May 12, 2021, 4:56 p.m. ET
“Using USMCA to protect freedom of association and collective bargaining rights in Mexico is helping workers both at home and in Mexico by stopping a race to the bottom,” she said, using the initials for the trade deal. “It also supports Mexico’s efforts to implement recent labor law reforms.”
Mexican President Andrés Manuel López Obrador said on Wednesday: “If there is abuse of workers in a company that exports to the US, if there are no fair wages, if there is no democracy, we need to intervene and a dialogue from government to government. “
GM said in a statement that it believed it had no role in the alleged labor violations and that it had asked a third party company to look into the matter. The company, which makes Chevrolet Silverado, Chevrolet Cheyenne and GMC Sierra pickups at its Silao plant, said it will work with the Mexican Department of Labor and the US government.
“General Motors supports the USMCA’s labor regulations, including the rapid response process,” the statement said. “As a company, we respect and support the right of our employees to make a personal decision about union representation and collective bargaining on their behalf. GM condemns labor law violations and measures to restrict collective bargaining. “
By announcing its request for a Mexican review, the Biden government avoided finding a controversial tone with the Mexican government.
Ms. Tai commended the government for “stepping in to suspend the vote when it became aware of voting irregularities,” adding: “Today’s action will complement Mexico’s efforts to ensure these workers get theirs.” Unrestricted exercise of collective bargaining rights. “
On Monday, the AFL-CIO and other groups filed a Rapid Reaction Mechanism complaint alleging alleged labor violations at Tridonex auto parts plants in the Mexican city of Matamoros across the border with Brownsville, Texas.
The Biden administration will look into the complaint, said an official in the agent’s office. It could then ask Mexico to conduct a review of the matter similar to the one it is seeking for the GM facility.
Oscar Lopez contributed to coverage from Mexico City.