US Labor Dept 'disappointed' by VU Manufacturing plant closure in Mexico

[Eugene]

Source: Reuters

US Labor Dept 'disappointed' by VU Manufacturing plant closure in Mexico

Daina Beth Solomon
Tue, October 10, 2023 at 5:52 PM EDT·2 min read

MEXICO CITY (Reuters) - The U.S. Department of Labor said on Tuesday it is disappointed by the closure of VU Manufacturing's facility in the northern Mexican city of Piedras Negras, which it said failed to adhere to a labor rights remediation plan under a regional trade pact.

VU Manufacturing, a small car upholstery factory, came under scrutiny for alleged violations twice under the 2020 United States-Mexico-Canada Agreement (USMCA), which has tougher rules than its predecessor, NAFTA, regarding protecting the right of workers to form unions.

The case marks the first time the U.S. has rebuked a company for failing to meet its commitments following a USMCA labor probe, in contrast to 13 other workplaces that have also come under review in Mexico.

In March, the U.S. and Mexico pledged to oversee VU Manufacturing carry out a series of commitments to remain neutral in union affairs and allow workers to freely organize.

-snip-

Read more: https://news.yahoo.com/us-labor-dept-disappointed-vu-215252988.html

[peppertree]

1. It's good to see Perot's "huge sucking sound" begin to be reversed somewhat

Mexico has, since 2008, been the largest vehicle manufacturer in Latin America - thanks mainly to NAFTA.

While some that was at the U.S.'s expense, Canada bore the brunt to the Big 3's "race to the bottom" - with Canadian vehicle output crashing by 50% from 2012 to 2022 (from 2.4 m to 1.2 m).

Not that's it's made that much of a difference to Mexico - since their auto workers make poverty wages, and can't actually buy the cars themselves.

If they can buy one at all, it's one made for the Mexican market (usually used) - which are much less safe than the models made for export.

Interesting news, Eugene. Do consider re-posting this in the Latin America forum.