WASHINGTON — U.S. Trade Representative Katherine Tai has requested a Rapid Response Labor Mechanism dispute panel to review what the U.S. government believes is an ongoing labor dispute at a Pirelli tire manufacturing plant in Mexico.
Specifically, the request is related to a facility operated by Pirelli Neumaticos S.A. de C.V., located in the Silao de la Victories municipality in the state of Guanajuato.
"This announcement highlights the Biden-Harris administration's commitment to empowering workers and holding corporations accountable," Tai stated in a Dec. 18 release. "The RRM is a critical enforcement tool for defending workers' collective bargaining rights.
"While we remain committed to collaborating with the government of Mexico to find a resolution, our priority is the application of the sectoral agreement covering the rubber industry at Pirelli and the full protection of workers' rights to freedom of association and collective bargaining at the facility."
For its part, Pirelli told Rubber News on Dec. 20 the “latest harmonization agreement negotiated with the union was guided by the Mexican Labor Ministry and was voted and approved by 89 percent of employees.”
“Pirelli acknowledges that the U.S. and Mexican authorities have not yet reached an agreement on resolving the Rapid Response Mechanism case triggered by the Office of the U.S. Trade Representative under the (U.S. Mexico-Canada Agreement),” the company said in an email. “Mexico conducted a thorough review of Pirelli’s manufacturing facility in Silao, Guanajuato, which concluded with a report finding no denial of rights at the facility.
“This finding was also acknowledged by USTR in its press release. Despite Mexico’s investigation finding no violations, the USTR has requested the case proceed to an arbitration panel.”
The Dec. 18 request, made under the auspices of the U.S. Mexico-Canada Agreement, follows an Aug. 23 request for a review that was sent to Mexico's Secretary of the Economy and Secretary of Work and Social Provisions, asking the Mexican government to review whether Pirelli workers were being denied the right to freedom of association and collective bargaining.
Mexico responded to the August request on Oct. 7, saying that no denial of workers' rights existed, and essentially considered the matter concluded.
"The United States disagrees with Mexico's determination and continues to have a good faith basis to believe that a denial of rights is occurring at (the Pirelli plant)," the Dec. 18 letter to Mexican officials states.