US-MEXICO RRM (3): Panasonic Automotive Systems de México

  • April 18, 2022: Sindicato Nacional Independiente de Trabajadores de Industrias y de Servicios Movimiento 20/32 (SNITIS) and US NGO Rethink Trade announce filing of a USMCA Rapid Response Mechanism petition with US Labor Department, concerning conflict at Reynosa, Mexico plant of Panasonic Automotive Systems de Mexico S.A. de C.V., which makes audio/video systems for autos in USMCA market. Press: El Economista, Reuters.

  • April 19: Petition by SNITIS to US Labor Department urges immediate suspension of liquidation of tariffs on US imports from this Panasonic plant: El Economista.

  • April 22: After two-day election, Mexican government announces that workers at the Panasonic plant voted 75%-25% for SNITIS over the CTM-affiliated union, Sindicato Industrial Autónomo de Operarios en General de Maquiladoras de la República Mexicana (SIAMARM). Press: El Economista, Reuters.

  • May 18: USTR announces a new request to the Mexican government to review whether workers at the Reynosa plant of Panasonic Automotive Systems de Mexico are being denied the rights of free association and collective bargaining. This request responds to the April 18 petition by the independent union SNITIS and the US NGO Rethink Trade. On April 22, the Mexican government announced that workers at the Reynosa plant had voted 75%-25% for SNITIS in a union representation election. USTR requested that Customs suspend liquidation of entries into the US of goods from the Reynosa plant. Links: Rethink Trade press release; El Economista; Rep. Pascrell statement. Update June 8: according to El Economista, SNITIS has announced it will strike unless agreement on a collective bargaining agreement is reached by June 9.

  • July 14: USTR and US Department of Labor announce successful resolution of matter, stating that the government of Mexico facilitated resolution including Panasonic actions to remediate workers’ claims, including recognition of SNITIS as workers’ sole bargaining representative and negotiation of new collective bargaining agreement with significantly increased wages; reinstatement with full back pay of workers allegedly terminated for participating in union activity; repayment of wage deductions for those who participated in a work stoppage at the facility. USTR requests Treasury Department to resume liquidation of entries from Reynosa plant.