Independent Union Wins in Mexico’s Panasonic Unit Voting

(Bloomberg) -- Workers at an auto-parts plant in Reynosa selected an independent union at a vote on Friday, a significant rejection of Mexico’s old-guard labor organization.

With 1,200 votes vs. 390 for the CTM, the 20/32 Movement will get a certificate from the Federal Labor Center to negotiate a new collective bargaining agreement with Panasonic Automotive Systems de Mexico S.A, Mexico’s labor conciliation agency said in a statement.

The result makes it less likely the U.S. will seek to reactivate the Rapid Response Mechanism to address labor violations. The mechanism, which was designed under a still-young regional trade pact known as the U.S.-Mexico-Canada Agreement, has put pressure on Mexico’s vast auto sector and led to Tridonex and General Motors Co. agreeing to improve workers’ conditions at their factories in the country.

The American Economic Liberties Project, a U.S. non-profit, and SNITIS, one of the unions in the Panasonic election, filed a complaint last week alleging that the other union had violated rules. It had bribed workers and collected dues, with Panasonic’s permission, prior to the election, according to a joint statement. If misconduct allegations are egregious from the April 21-22 election or there is a stalemate with the company once the results are released, that could lead to U.S. intervention.

“A lot of companies have taken advantage of not paying living wages to industrial workers,” said Daniel Rangel, the research direction of Rethink Trade, a division of the non-profit that filed the complaint. “Companies collude with unions to suppress wages.”

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