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U.S. asks Mexico to probe whether Stellantis parts plant abused labor rights

MEXICO CITY and WASHINGTON — The United States has asked Mexico to probe alleged worker rights violations at an auto-parts plant owned by Italian-French carmaker Stellantis, the fourth such complaint under a revised trade deal, U.S. officials said on Monday. The U.S. request for Mexico to examine possible abuses at Teksid Hierro de Mexico in the northern border state of Coahuila comes under the 2020 United States-Mexico-Canada Agreement (USMCA). Teksid, which employs nearly 1,500 people and makes iron castings for heavy vehicles, has been embroiled in a union dispute since 2014. Workers say the company has blocked them from being represented by the group of their choice, the Miners Union, and that it dismissed workers who backed the group. The U.S. Trade Representative's (USTR) office said in the request it was concerned workers had been denied collective bargaining rights in connection with an "invalid" contract with the Confederation of Mexican Workers (CTM), one of Mexico's most powerful unions, that had been registered with state authorities. The office asked Mexico to investigate if efforts had been made, including threats and incentives, to encourage backing for CTM or to dissuade support for the Miners Union. Labor disputes in Mexico have long featured intimidation tactics by powerful unions cozier with employers and governments than workers. Under the USMCA, the trade pact that replaced NAFTA, factories that violate worker rights could lose their tariff-free status. Companies have been watching how the tougher labor rules will play out. Stellantis, the world's fourth-largest auto group which formed from the merger of Peugeot maker PSA and Fiat Chrysler, said it "respects and supports the collective bargaining rights of its employees around the world and will comply with all local laws in that regard." The United Auto Workers union, which represents U.S. Stellantis workers, along with the AFL-CIO labor federation and the Miners Union, flagged the potential violations, the USTR's office said. Teksid, CTM and the local Conciliation and Arbitration Board should be included in the review, it added. CTM did not immediately respond to a request for comment. The union's leader in Coahuila, Tereso Medina, recently told Mexican newspaper El Economista the union would abide by the USMCA and that the conflict should be resolved with a workers' vote. Mexico's federal labor center in May said the Miners Union held the only valid contract.

Stellantis and the UAW reach tentative contract deal to end strike

The United Auto Workers has made a tentative deal with Stellantis that follows a template set by UAW and Ford. The deals will amount to total pay hikes of more than 33% when compounding and cost-of-living are factored in. The contracts will start with an initial increase of 11%. "We look forward to welcoming our 43,000 employees back to work and resuming operations," Stellantis said on Saturday. The Ford and Stellantis agreements will have to be ratified by all workers. U.S. President Joe Biden said in a statement the Stellantis "contract is a testament to the power of unions and collective bargaining to build strong middle-class jobs." The deal includes an agreement to reopen Stellantis' assembly plant in Belvidere, Illinois, which will now build midsize trucks, Fain said in a video on social media. The trucks could compete against Ford's Ranger and GM's Chevrolet Colorado and GMC Canyon models. The factory was previously shuttered and became a rallying point for the union's bargaining campaign. Stellantis also agreed to build a battery plant next to the Belvidere plant, UAW said. Illinois Governor Jay Pritzker called the agreement a "huge win for Illinois" and said the state will offer incentives to help offset the automaker's costs. Stellantis will also keep open two facilities that were under threat of closure -- an engine manufacturing complex in Trenton, Michigan, and a machining operation in Toledo, Ohio, Boyer said. In all, the automaker committed $19 billion in new investments in U.S. operations and the creation of 5,000 jobs where previously it planned to cut 5,000 jobs, Fain and Boyer said. The UAW has won the right to strike over product investment decisions, Fain said. The United Auto Workers on Saturday expanded its strike against General Motors to include its Spring Hill, Tennessee, engine plant, a move that could stall GM's large pickup production and increase its financial pain. The expansion of the seven-week strike leaves GM the only Detroit automaker without a contract deal.  Those deals won workers a record 25% jump in wages over the 4-1/2-year contract and allow the companies to restart their profitable truck assembly lines. At GM, people familiar with the bargaining said sticking points in the UAW negotiations include retirement benefits and issues related to temporary workers. GM has more retirees than either Ford or Stellantis and increases to pension benefits for workers hired before 2007 cost GM more than its rivals.

Bronco Scout, Ford and Rivian, and next-gen Land Cruiser | Autoblog Podcast #578

In this week's Autoblog Podcast, Editor-in-Chief Greg Migliore is joined by Road Test Editor Reese Counts and Assistant Editor Zac Palmer. First, they dicuss recent news, including the upcoming next-gen Toyota Land Cruiser, Ford's trademarking of "Scout" and "Bronco Scout," and Ford's $500 million investment in EV startup Rivian. After that, they talk about the cars they've been driving, including the Jeep Wrangler, Cadillac XT4 and Buick Regal GS. Last but not least, they help a listener choose a new car in our "Spend My Money" segment. Autoblog Podcast #578 Get The Podcast iTunes – Subscribe to the Autoblog Podcast in iTunes RSS – Add the Autoblog Podcast feed to your RSS aggregator MP3 – Download the MP3 directly Rundown Toyota promises a next-generation Land Cruiser Ford trademarks "Scout" and "Bronco Scout" Ford invests $500 million in Rivian Cars we're driving: 2019 Jeep Wrangler 2019 Cadillac XT4 2019 Buick Regal GS Spend My Money Feedback Email – Podcast@Autoblog.com Review the show on iTunes Related Video: