Mexico court rules for union in Goodyear labor rights case

SAN LUIS POTOSI, Mexico—A case filed against Goodyear April 20 by an independent union alleging a denial of labor rights at the central Mexico passenger tire production facility has been resolved, according to the U.S. Department of Labor.

The complaint was filed under the U.S.-Mexico-Canada Rapid Response Labor Mechanism, the eighth such filing under the relatively new system implemented by the Biden administration.

The July 19 ruling came down in favor of the independent union, with several specified mandates for Goodyear moving forward in the matter.

Goodyear said July 20 that it was disappointed in the decision but continues to support labor rights.

"While disappointed with the finding, Goodyear is committed to our employees' rights to free association and collective bargaining," the company told Tire Business sister publication Rubber News. "Goodyear's plant in San Luis Potosi is a state-of-the-art facility with strong employee satisfaction, competitive wages and attrition of less than 1 percent.

"Goodyear will continue to work closely with Mexican and U.S. authorities to protect our associates' right to select their own representation, freely and fairly."

The United Steelworkers said in a statement of support July 19 that the original CTM pact was signed with Goodyear without any semblance of the independent union/worker participation.

The CTM is the Confederation of Workers of Mexico, generally viewed as pro-employer, a spokesperson with the USW said to Rubber News.

"As the union representing Goodyear workers in the United States, the USW supported the Mexican workers' fight to win democratic representation over the past five years," USW International President Tom Conway said.

"All workers deserve to choose their union in a free and fair election. The USW thanks all the members of Congress who fought for strong labor rights enforcement in the USMCA and who supported the Goodyear workers and all Mexican workers who are fighting for democratic representation."

After the April 20 complaint to the USTR and DOL by independent union workers at the plant, the two U.S. agencies requested that the Mexican government review the alleged denial of unionization rights May 22.

And "the Mexican government took a proactive approach," according to DOL officials.

"Its Federal Center for Conciliation and Labor Registration suspended an April vote due to serious irregularities and held a second vote in early May without significant issues and with external observers present, including those from the International Labor Organization," according to a May 22 statement from DOL.

According to the DOL, those "irregularities" included the incumbent union CTM allegedly stealing the ballot box during the initial vote.

"On April 23, a vote on the legitimation of the plant-level labor contract was suspended after the incumbent CTM union stole the ballot box," USW stated in its July 19 release.

In the second vote May 8, San Luis Potosi workers overwhelmingly rejected the CTM's collective bargaining agreement, resulting in that pact's termination at the end of May.

In rejecting the CTM's CBA, the workers at the Goodyear tire facility in San Luis Potosi have "expressed their will," Deputy Undersecretary for International Affairs Thea Lee said in the May 22 DOL statement.

"We now look to Goodyear to treat their workers fairly and apply the sectoral agreement."

According to the complainants, Goodyear had "refused to apply a sectoral agreement" covering terms and conditions of employment within the rubber industry in Mexico.

"Sufficient and credible evidence supporting the allegation enabled the committee to invoke the rapid response labor mechanism," according to the U.S. DOL, co-chair of the USMCA (rapid response) committee.

Under agreed procedures, Mexico's government had 45 days to examine the claims and present its findings.

Under the agreement reached July 19, Goodyear is to remain neutral with respect to the pending vote between the independent union and the CTM for the right to administer the industry-wide collective agreement (contract law), according to the DOL.

"The contract law for the rubber industry applies to the facility, and the plant-level agreement is invalid," according to the DOL-Mexican government resolution. "However, any terms and conditions in the plant-level agreement that are more favorable than the terms of the contract law will be applied going forward.

"Workers who were misclassified will receive a year's back pay and benefits, the maximum under Mexican law."

In addition, the agreement mandates that Goodyear "harmonize current plant rules and conditions with the provisions of current contract law, in consultation with the workers at the federal center."

Known as the Casa Obrera Potosina worker center, the federal center set up in 2018 "enables the struggling workers of two important plants in the country to meet the colleagues at Goodyear from San Luis Potosi and those who fought for the recognition of their union and their right to freedom of association at General Motors in Silao, Guanajuato."

The USW's Conway said July 19 that the case "established a strong precedent and called on all tire industry employers in Mexico to respect workers' rights."

"We call on all tire industry employers to maintain strict neutrality in any union organizing campaign," Conway said. "We also call on the Mexican authorities to arrest and prosecute the persons responsible for the theft of the ballot box earlier this year."

The USMCA Rapid Response Labor Mechanism allows the U.S. to take enforcement action based on labor situations at an individual factory in Mexico if such a facility fails to comply with domestic freedom of association and collective bargaining laws.

This is the second time in four years that Goodyear has been accused of poor labor relations at the Mexican plant.

In 2019, four members of the U.S. House of Representatives were refused entry to the plant during a fact-finding trip on labor conditions in Mexico, including allegations from former workers there about poor working conditions, low wages, illegal termination and discrimination.

The San Luis Potosi facility, which employs about 1,100 people and opened in 2017, is operated by Goodyear, the world's third-largest tire company.

The facility has capacity for about 6 million passenger car tires per year.

Based in Akron, Goodyear employs about 74,000 people globally and manufactures its products in 57 facilities in 23 countries.