Tridonex Agrees to Back Pay, Neutrality Following USMCA Rapid Response
Autoparts maker Tridonex, a subsidiary of Cardone Industries, agreed to offer back pay to more than 150 employees who used to work at its Matamoros plant and to remain neutral as the workers at that plant vote on whether to reject the protection union and choose an independent union. A protection union is a union that is in league with the company, rather than an independent voice for workers.
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The Office of the U.S. Trade Representative Aug. 10 announced the settlement of allegations that workers' right to unionize was violated; the complaint was brought by the AFL-CIO under the Rapid Response Mechanism, and supported by USTR in June (see 2106100011). This was the second case that used the rapid response approach. Unions had said that Tridonex fired nearly 600 workers who supported an independent union, Sindicato Nacional Independiente de Trabajadores de Industrias y de Servicios Movimiento 20/32.
The back pay amount will be more than $600,000, USTR said. Tridonex did not admit that it fired the workers over their support of a union, but said "Tridonex will establish a revised procedure for future staff reductions that includes the application of objective criteria that does not discriminate against workers based on their union affiliation, activities, or views."
It also said it will post a notice that it is neutral in the vote on retaining the current union or choosing a new one, and it will allow Mexican Labor Ministry officials to train workers on their rights during work hours and will allow government officials to observe the election. "The declaration will prominently include a guarantee from the company that it will not retaliate against any workers for exercising their rights, as well as a statement that Tridonex has a zero-tolerance policy for any reprisals in connection with the vote and for any intimidation by Tridonex employees," the agreement said. The company also will staff a complaints hotline for workers' rights, and will investigate allegations.
“Workers at home and abroad deserve the right to collectively bargain for a fair wage and decent working conditions without the fear of retaliation,” USTR Katherine Tai said. “The agreement reached with Tridonex to provide severance, backpay and a commitment to neutrality in future union elections shows our determination to leverage the USMCA’s innovative enforcement tools to address long-standing labor issues and support Mexico’s implementation of its recent labor reforms. This result is another important example of USTR’s worker-centered trade policy in practice and I commend the company and the Government of Mexico for working constructively to achieve this important outcome.”
Mexican officials not only agreed to do the trainings and observe the campaign and vote, but also to return a year after the vote to talk to workers.
Tridonex also agreed to more actions to fight the spread of COVID-19 in the plant, including providing workers with protective equipment, testing workers with symptoms and paying workers who have to quarantine if they exhaust government-provided paid leave.
House Ways and Means Chairman Richard Neal, D-Mass., and Trade Subcommittee Chairman Earl Blumenauer, D-Ore., issued a joint statement welcoming the agreement. "Yesterday’s announcement demonstrates the importance of having effective enforcement tools in our trade agreements, and this is exactly why we led the House Democrats’ charge to rethink our approach to trade enforcement and improve the USMCA," they said.
If a company did not agree to a remediation plan such as this one, and a panel determined that workers' rights were violated, the tariff benefits for the goods produced at that facility could be denied at the border.