Panasonic Plant Is Target of USMCA Rapid Response Complaint

U.S. Trade Representative Katherine Tai asked Mexico to review whether workers at the Panasonic Automotive Systems de Mexico facility in Reynosa are being denied the rights of free association and collective bargaining. By doing so, USTR is endorsing an April 18 request from Rethink Trade and a Mexican union that was, at the time, trying to win a union vote at the factory (see 2204190031). The two groups' complaint said that Panasonic fired more than 60 workers who supported the independent union, and that the captive union, Confederación de Trabajadores de México (CTM), was offering bribes to workers to get their votes. They also said that Panasonic signed a contract with CTM before the vote, and started withholding union dues almost a month before the vote.

However, between their complaint and this action, reports from Mexico said that 75% of workers chose the independent union, and that Panasonic said it will work with that union.

Tai asked for the review under the USMCA's Rapid Response Mechanism. “This announcement demonstrates once again that, when concerns arise, we will work swiftly to stand up for workers on both sides of the border,” Tai said in a press release May 18. “Along with Secretary Marty Walsh and his team at the Department of Labor, we have worked closely with the Mexican government to address Rapid Response Labor Mechanism matters quickly, and I look forward to doing the same on this issue as well.”

Liquidation will be suspended for imports from this factory until the complaint is resolved. The Mexican Embassy did not immediately return a request for comment.