US announces labor resolution with Auburn Hills auto supplier in Mexico

The Biden administration on Monday announced a resolution has been reached with the government of Mexico in a labor rights and collective bargaining complaint involving a plant operated by an Auburn Hills auto supplier.

The administration had asked the Mexican government on March 6 to review whether workers at the plant, operated by Unique Fabricating, in Santiago de Queretaro in central Mexico, were being denied rights of free association and collective bargaining.

The review process, called a rapid response mechanism, was created as part of the United States-Mexico-Canada Agreement trade deal, which replaced the North American Free Trade Agreement in 2020.

U.S. Trade Representative Katherine Tai's office has pursued complaints under the United States-Mexico-Canada Agreement against a number of companies accused of violating workers' rights in Mexico, including one that just wrapped up involving Auburn Hills-based auto supplier Unique Fabricating.
U.S. Trade Representative Katherine Tai's office has pursued complaints under the United States-Mexico-Canada Agreement against a number of companies accused of violating workers' rights in Mexico, including one that just wrapped up involving Auburn Hills-based auto supplier Unique Fabricating.

A joint news release from the Office of the U.S. Trade Representative and the Department of Labor said that the Mexico government took many actions during its review of the case to ensure workers' rights are protected at the facility. Those actions include conducting training for management and workers and working with the company to issue a neutrality statement recognizing workers' ability to pick a union of their choice and "stating its zero-tolerance policy toward union favoritism and discrimination."

More: Mexico says Troy-based auto supplier hindered plant workers' rights

The release said the company had also signed an agreement with the employees' new union related to providing equal access to the facility, taking steps to prevent future violations and provide dues to the new union.

Attempts to reach company representatives were unsuccessful. The company has said it supplies Tesla, Toyota, Ford, General Motors, BMW, Nissan and Jeep-parent Stellantis and provides materials for acoustic and air and water sealing needs.

U.S. Rep. Dan Kildee, D-Flint, released a statement Monday applauding the administration's efforts.

“We must enforce trade deals for agreements like the U.S.-Mexico-Canada Agreement to work properly. I fought to replace NAFTA with the U.S.-Mexico-Canada Agreement to better support American workers. When we enforce our existing trade agreements, we can ensure that Michigan and American workers have a level playing field," Kildee, who is a member of House Ways and Means Committee's Subcommittee on Trade, said in the statement.

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The review process has been used numerous times. A separate case involving a metro Detroit supplier has also drawn attention. That case involved Troy-based VU Manufacturing, which had the distinction of being the only company so far to face two complaints through the review process.

On March 31, the Mexico government announced that it had reached agreement with the Biden administration on a plan to address a denial of worker rights at VU's plant in Piedra Negras. The plan "includes various actions and commitments by (the company) aimed at guaranteeing the full validity of the rights to freedom of association and collective bargaining and creating conditions for union activities in the company to be carried out in a neutral and safe environment."

The company was accused of not bargaining in good faith, among other issues, and workers who spoke to the Free Press described difficult conditions at the plant and low wages.

Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber.

This article originally appeared on Detroit Free Press: US announces labor resolution with Unique Fabricating in Mexico

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