U.S., Mexico resolve labor probe at Grupo Yazaki auto parts plant in Mexico

Story by Reuters •

The logo of the U.S. automotive products supplier Yazaki is pictured after announcing layoffs among its Mexico workforce, amid the coronavirus disease (COVID-19) outbreak, in Ciudad Juarez© Thomson Reuters

MEXICO CITY (Reuters) - The U.S. and Mexico have resolved a labor complaint under a regional trade deal at a Grupo Yazaki auto parts factory in the central Mexican state of Guanajuato, both governments said on Wednesday.

Grupo Yazaki, part of Japan's Yazaki Corp., agreed to issue a neutrality statement, and the Mexican government will ensure training for workers, union representatives and management about labor rights, the U.S. Trade Representative's (USTR) office said in a statement.

U.S. labor officials in August had asked Mexico to probe for potential abuses at the plant under the United States-Mexico-Canada Agreement (USMCA), citing a petition from a Mexican labor organization that alleged irregularities in a workers' contract vote.


Mexico denied the request, finding no substantial evidence of employer interference in the vote, and the USTR's office on Wednesday said it agreed that there was no ongoing denial of rights.

Grupo Yazaki acted proactively to issue a neutrality statement on its website and throughout its workplaces nationwide, according to Mexican officials.

"It reaffirms a zero-tolerance policy against any retaliation, threat or harassment against workers," Mexico's economy and labor ministries said in a statement.

Companies have closely watched a number of U.S. labor complaints play out since the 2020 start of the USMCA, which has tougher worker rights rules than the earlier NAFTA trade deal. Under the USMCA, companies can be sanctioned if they fail to swiftly resolve labor complaints.

(Reporting by Daina Beth Solomon; Editing by Kylie Madry and Brendan O'Boyle)