Labor Dispute Settled at Panasonic Mexico Under USMCA Mechanism

The U.S. and Mexico resolved a labor complaint under the U.S.-Mexico-Canada Agreement on free trade involving the Panasonic Automotive Systems facility in Reynosa, Mexico, where workers were previously denied their freedom of association and collective bargaining rights, said the Office of the U.S. Trade Representative Thursday. Panasonic management in Reynosa agreed to reimburse workers for dues it had deducted for a union contract that workers didn't choose, and it negotiated a contract with an independent union that would provide a "significant wage increase," said USTR. Panasonic also agreed to rehire with back pay 26 workers allegedly fired for their union support, it said. USTR originally filed the complaint with the Mexican government after workers at the plant had already chosen the independent union by an overwhelming vote. Though USMCA's rapid response mechanism allows the U.S. to withdraw tariff benefits for goods shipped from a plant that violates labor rights, each complaint so far has been settled without monetary remedies.