The United States government is considering filing a complaint about labor abuse at the Mexican auto parts plant of Stellantes. Under the rules of the new trade agreement that replaced NAFTA, factories that infringe on workers’ rights could lose their duty-free status for export to the United States.
Since 2014, the Stellantis plant – which employs nearly 1,500 people and produces cast iron castings – has been locked in a union dispute where workers cannot be represented by a union of their choosing, crew representatives say. The rioting workers were to be laid off. Hence the complaint submitted to the United States based on the rapid response mechanism of the United States of America, Mexico and Canada.
Therefore, US labor authorities informed the Mexican government in early May that they were considering launching an investigation into the case. They have 30 days from receiving the union’s petition to assess whether the case should proceed.
Stellantis has stated that it respects collective bargaining rights and will comply with local laws. Stellantis operates seven other assembly, engine and automotive components facilities in Mexico. In 2021, more than 400,000 cars were produced in this country.
Stellantis has at least some active labor disputes – including in France and Spain. He also had disputes with dealers, some of which ended in court. Recently, Stellantis lost a lawsuit in Austria. Some inconsistencies arise from changes imposed by the management of the company in order to achieve maximum savings.
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