U.S. Lodges Labor Complaint Against Panasonic In Mexico

U.S. labor officials on Wednesday asked Mexico to probe whether workers at a Panasonic auto parts factory were denied labor rights, marking the third U.S. labor complaint under a new trade deal that aims to improve workplace conditions in Mexico.

The request from the U.S. Trade Representative (USTR) comes after a Mexican union last month petitioned the U.S. government to probe Panasonic's plant in the northern border city of Reynosa, alleging violations of the 2020 United States-Mexico-Canada Agreement (USMCA).

U.S. Trade Representative Katherine Tai said in a letter to Mexico's Economy Minister Tatiana Clouthier that the agency was concerned workers were being denied rights to free association and collective bargaining at Panasonic Automotive Systems de Mexico.

Panasonic Corp of North America said in a statement it "respects and supports the rights of freedom of association and collective bargaining for our employees" and that it did not believe it denied these rights.

The unit of the Japanese industrial conglomerate said it would "continue to comply with all legal requirements ... and cooperate with authorities as requested by the Mexican Government in its review."

Tai noted that two previous labor complaints, also filed under the USMCA's "Rapid Response Mechanism" that aims to swiftly resolve disputes, led to benefits for workers.

"When concerns arise, we will work swiftly to stand up for workers on both sides of the border," Tai said in a statement.

Mexico's economy and labor ministries did not immediately respond to requests for comment. The Mexican government has 10 days to agree whether to conduct a review.

The Mexican union that requested the inquiry, SNITIS, accused Panasonic of signing a union contract behind workers' backs and of firing several dozen employees who protested.

© Copyright Thomson Reuters 2022. All rights reserved.

RECENT NEWS

BlackRock Looks To Human Fund Managers

BlackRock is overhauling its flagship quantitative hedge fund as it prepares to challenge some of the industry’s most ... Read more

Nvidia Chip Demand Defies Talk Of A Slowdown

Nvidia has delivered another set of powerful quarterly results that eased investor nerves and strengthened confidence in... Read more

META Wins Antitrust Case

Meta has secured a decisive victory in one of the most significant US antitrust cases in years, after a federal judge re... Read more

Amazons AI Boom UPs Profits, But 14,000 Are Axed

Amazon has reported its strongest cloud growth in nearly three years, powered by surging demand for artificial intellige... Read more

Trump Pardons Binance Founder

ChatGPT said:Donald Trump has granted a presidential pardon to Changpeng Zhao, the billionaire founder of Binance, closi... Read more

Powell: AI Investment Is No Bubble

Federal Reserve Chair Jerome Powell has drawn a clear line between the current boom in artificial intelligence and the e... Read more