Five Democrats Ask USTR to Consider Tariffs Against VU Exports Over Labor Issues
An auto parts manufacturer in Piedras Negras, Mexico, which was previously subject to a rapid response complaint, is the target of a second complaint, this time by the union that won an election there in August, La Liga.
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The first complaint was that the company, Manufacturas VU, a Michigan-headquartered supplier of interior automotive trims, was discouraging workers from leaving the captive union and choosing La Liga, and it was settled in September (see 2209150047). Rep. Dan Kildee, D-Mich., three other House Ways and Means Committee members from the center and left, and fellow Michigan Democrat Rep. Rashida Tlaib wrote to the U.S. trade representative and the labor secretary to say that the fact that a second allegation was made so soon after the first complaint was settled "raises important questions as to the U.S. government's efforts to ensure ongoing remediation and compliance."
The Jan. 10 letter said La Liga filed a complaint Dec. 29 that said the Michigan-based manufactuer is not bargaining in good faith, and that it has allowed members of the captive union to threaten La Liga members. The letter says they "have made threats against long-time labor organizer Julia Quinones, targeting her and family members in both public and private in a manner that suggests the potential for violence."
They asked the administration to "rigorously investigate" the allegations, and also said, "In cases of repeat offenders such as VU, DOL and USTR ought to consider applying remedial measures provided by Congress in the USMCA."
The USMCA allows for withdrawing USMCA tariff benefits on the first or second offense, or "the imposition of penalties on goods" from the factory. The text says that the remedy must be "proportional to the severity of the Denial of Rights." The text also says a dispute panel must find a violation for there to be a remedy applied, and that the panel's view of the severity of the violation must be taken into account when deciding what the remedy will be.
None of the complaints have gone to a panel yet, as the U.S. and Mexico have agreed on how to settle each case so far.
Neither the office of USTR nor VU responded to requests for comment by publication time.