U.S. unions lodge first Mexico labor grievance under new NAFTA

From today’s Reuters Online:

U.S. unions on Monday filed the first labor rights petition against Mexico under a new regional trade pact, vying to bring a complaint against an auto parts company on the border that they say has denied workers the right to independent representation.

The petition – filed by the biggest U.S. labor federation, the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) – states that workers at Tridonex in Matamoros, across from Texas, were blocked from electing a union of their choice.

The United States-Mexico-Canada Agreement (USMCA) that replaced NAFTA last year, enshrines that right as part of its aim to give more power to workers to demand better salaries. It was also meant to prevent low labor costs from leeching more U.S. jobs.

Since the 1994 NAFTA, which had few enforcement tools for labor rules, wages in Mexico have stagnated and now rank as the lowest in the Organisation for Economic Cooperation and Development (OECD), a club of 37 industrialized nations.

Reuters reported last week that hundreds of workers had sought to be represented by a new union led by activist-attorney Susana Prieto since 2019, yet state labor officials never scheduled an election. Prieto said 600 of her supporters at Tridonex last year were fired, in what some workers described as retaliation for their efforts to switch unions. read more

Tridonex’s parent is Philadelphia-based Cardone Industries, which is controlled by Canadian company Brookfield Asset Management (BAMa.TO).

Cardone said it did not agree with the AFL-CIO’s assertions, but would address any concerns that could arise in the complaint process.

“We do not believe that the allegations in the complaint are accurate and welcome a full inquiry so that the facts can be disclosed,” the company said in a statement, without detailing which elements it disputed.

Read the complete article here.

G.M. to Idle Plants, Cutting Thousands of Jobs in North America as Sales Slow

From today’s New York Times:

General Motors announced Monday that it planned to idle five factories in North America and cut roughly 14,000 jobs in a bid to trim costs. It was a jarring reflection of the auto industry’s adjustment to changing consumer tastes and sluggish sales.

The move, which follows job reductions by Ford Motor Company, further pares the work force in a sector that President Trump had promised to bolster. Referring to G.M.’s chief executive, Mary T. Barra, he told reporters, “I spoke to her and I stressed the fact that I am not happy with what she did.”

Mr. Trump also invoked the rescue of G.M. after its bankruptcy filing almost a decade ago. “You know, the United States saved General Motors,” he told reporters, “and for her to take that company out of Ohio is not good. I think she’s going to put something back in soon.”

In addition to an assembly plant in Lordstown, Ohio, the cuts affect factories in Michigan, Maryland and the Canadian province of Ontario.

Part of the retrenchment is a response to a slowdown in new-car salesthat has prompted automakers to slim their operations and shed jobs. And earlier bets on smaller cars have had to be unwound as consumers have gravitated toward pickup trucks and sport-utility vehicles as a result of low gasoline prices.

In addition, automakers have paid a price for the trade battle that Mr. Trump set in motion. In June G.M. slashed its profit outlook for the year because tariffs were driving up production costs, raising prices even on domestic steel. Rising interest rates are also generating headwinds.

Read the complete article here.