U.S., Mexico agree deal to fix labor dispute at VU Manufacturing plant

WASHINGTON/MEXICO Metropolis, March 31 (Reuters) – The U.S. and Mexico on Friday introduced a deal to take care of a U.S. labor complaint at VU Manufacturing in northern Mexico that demands the auto sections plant to allow workers freely opt for their union in line with a trade pact aimed at increasing labor legal rights.

Mexico’s governing administration previously identified “critical irregularities” at the factory violating the 2020 United States-Mexico-Canada Agreement (USMCA), the 2nd probe into the plant at the ask for of the U.S. adhering to employee problems.

Mexico has now agreed to start off sanctions proceedings against VU Production and be certain the agency will take “acceptable motion” in opposition to human resource personnel who violated worker legal rights, including the possibility of firing them, the accord stated.

“The new management will have to affirm … its willingness to dialogue with all the unions with out discrimination or favoritism,” reported the settlement printed on the U.S. Trade Representative’s website.

VU Producing, an unlisted Michigan-centered organization, did not promptly respond to a request for comment.

Employees who recently fashioned a new union, La Liga, mentioned VU Production management in the border metropolis of Piedras Negras had regularly stalled the union’s efforts to build the plant’s to start with collective deal, which would include things like a salary enhance, and intimidated and harassed union supporters.

La Liga member Cristina Ramirez explained the U.S.-Mexico accord would reward employees if VU Manufacturing adopted by means of.

“Following we’ve proved so lots of violations to our rights, the only true remediation is the signing of the collective deal,” she stated.

The plant produces motor vehicle inside parts which include arm rests and doorway upholstery for brand names such as Toyota (7203.T), Honda (7267.T) and Chrysler, and pays personnel 312 pesos ($17.32) a day.

The U.S. reported it hoped Mexico’s attempts to deal with the problem would discourage other firms from meddling in union affairs.

“This will send out a strong message over and above this facility,” reported Thea Lee, deputy undersecretary for intercontinental affairs at the U.S. Labor Office.

The VU Manufacturing case is amongst quite a few labor problems filed by the U.S. in Mexico underneath USMCA. Others entail Normal Motors (GM.N), Stellantis (STLAM.MI) and Panasonic (6752.T).

($1 = 18.0099 Mexican pesos)

Reporting by Daina Beth Solomon in Mexico City and David Lawder in Washington Editing by Chris Reese, Anthony Esposito and Raju Gopalakrishnan

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