The government of Mexico said it has found “serious irregularities” and company actions that hindered workers’ rights at a plant operated by a metro Detroit auto supplier following a review request by the Biden administration.
The situation marks the second time in less than a year that the Mexican government has been asked to intervene in a case involving VU Manufacturing, based in Troy.
A message seeking comment was left for company President Don Cunningham.
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VU Manufacturing has the distinction of being the only company so far to face two complaints under a rapid response mechanism developed as part of the United States-Mexico-Canada Agreement, which sets trade rules between the countries.
The announcement posted Thursday about VU Manufacturing and reported earlier by Reuters said the Mexican government would initiate a 10-day consultation period with the United States to try to reach a reparation plan. It noted the company’s actions had hindered freedom of association and collective bargaining rights at the plant.
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The VU Manufacturing plant is based in Piedras Negras, which is across the Rio Grande from Eagle Pass, Texas. The plant supplies plastic and vinyl interior automotive pieces.
The company has also been accused of not bargaining in good faith, among other issues after workers chose a new union to represent them last year.
Workers who spoke to the Free Press described difficult conditions at the plant and low wages, such as a base rate of 312 pesos per day (less than $16, based on the current exchange rate) and bonuses that are a challenge to get.
VU Manufacturing isn’t the only metro Detroit company facing issues. Earlier this month, U.S. Trade Rep. Katherine Tai’s office announced that Mexico had been asked to review whether workers at a Unique Fabricating facility in Santiago de Queretaro in central Mexico were being denied rights of free association and collective bargaining, which marks the seventh time the rapid response mechanism has been used. Unique Fabricating is an automotive supplier based in Auburn Hills that says it serves Tesla, Toyota, Ford, General Motors, BMW, Nissan and Stellantis.
Contact Eric D. Lawrence: elawrence@freepress.com. Become a subscriber