US-Mexico RRM: (9) Goodyear Fabricating

  • April 20, 2023: La Liga Sindical Obrera Mexicana (LSOM) filed petition with US Department of Labor alleging that a plant of Goodyear SLP, S. de R.L. de C.V. in San Luis Potosí has refused to apply a sectoral collective bargaining agreement (contrato ley) covering the rubber industry, and instead has signed a company-specific collective bargaining agreement with lower benefits, with the Miguel Trujillo Lopez union affiliated with the Confederation of Mexican Workers (CTM).

  • The 2023 petition followed 2019 criticism by US Ways & Means Democratic Party members about this plant, and 2018 wildcat strike at the plant.

  • April 23: Mexico’s Federal Center for Conciliation and Labor Registration (CFCRL) suspended a vote by Goodyear workers on the collective bargaining agreement with the Miguel Lopez Trujillo union. CFCRL and Ministry of Labor denounced irregularities in the vote, including theft of the ballot box used in the first day of voting.

  • May 8: In a vote verified by the CFCRL and observed by the ILO, 83% of workers voting at the Goodyear plant rejected the agreement, terminating the agreement with Miguel Lopez Trujillo union as of May 31, 2023.

  • May 22: USTR announced that US has again invoked the USMCA Rapid Response Mechanism and has asked Mexico to review whether workers at a facility operated by Goodyear SLP, S. de R.L. de C.V. in San Luis Potosí are being denied the rights to freedom of association and collective bargaining. Mexico has 10 days (until June 1) to decide whether to conduct a review, and if it agrees, 45 days (until July 6) to conduct the review. In the meantime, US customs clearance of imports from the Goodyear plant is suspended.

  • June 1: Mexican government announced it has agreed to review potential labor rights violations at Goodyear plant pursuant to May 22 US request. Link: Ministry of Economy announcement.

  • July 19: Governments of Mexico and the US announced agreement on a remediation plan for labor relations at the Goodyear tire manufacturing plant in San Luis Potosí. Links: Mexican government press release; press release by United Steelworkers welcoming resolution of this case and calling on all tire industry employers in Mexico to respect workers’ rights; report by El Universal.

  • August 9: El Universal reported that as part of the remediation plan at Goodyear México agreed in July, a vote on August 7-8 has replaced the former union with the Sindicato Independiente de Trabajadores de Goodyear México. Also, Goodyear must apply the Rubber Industry Contract (Contrato Ley de la Industria Hulera) as from January 19, 2024, resulting in a 30% increase in wages.

  • October 17: El Economista reported that following up on the remediation plan, workers at the Goodyear plant will be paid compensation for past failure to apply the Rubber Industry Contract.

  • February 5, 2024: US Department of Labor and USTR announced successful conclusion of the Rapid Response Mechanism remediation plan at Goodyear rubber tire plant in San Luis Potosí after 2023 Rapid Response Mechanism review. Over 1300 workers have received $4 million in back pay, reclassification of jobs resulting in wage increases, and improved benefits. Press release quoted United Steelworkers Union VP praising the result as closing the wage gap between USW Goodyear workers in the US and their Mexican counterparts. USTR requested that Treasury Department resume liquidation of entries from this plant. Links: Full course of remediation; Spanish language translation of full course of remediation; USTR letter to Treasury Department.