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3 Minutes to Read (Reuters) – MEXICO CITY (Reuters) – A U.S. advisory council that monitors Mexico’s compliance with a new regional trade treaty said Mexico’s effort to wipe out employment contracts signed behind workers’ backs had “serious shortcomings” and should be modified. PHOTO FROM THE FILE: Workers leave after concluding their shift at the General Motors truck assembly facility in Silao, Mexico, on May 22, 2020, as the corporation gradually resumes operations at its Mexican plants in the wake of the coronavirus illness (COVID-19) outbreak. Sergio Maldonado/Reuters A disputed ballot at a General Motors plant was highlighted by the Independent Mexico Labor Expert Board (IMLEB) as an example of flaws in a new Mexican labor law requiring “legitimacy” votes in an attempt to end the widespread practice of unions and companies signing contracts without workers’ knowledge. That is also an objective of the United States-Mexico-Canada Agreement (USMCA), which replaced the North American Free Trade Agreement (NAFTA) a year ago and includes a mechanism to penalize firms that violate labor laws. The IMLEB noted in a report to US labor authorities and lawmakers on Wednesday that “the legitimation process continues to have very severe shortcomings.” A request for comment from Mexico’s labor ministry was not immediately returned. It has stated that it is looking into methods to improve the ratification process. The union-led poll in April at GM’s Guanajuato plant, in which workers were to decide whether or not to preserve their present collective bargaining agreement, was canceled when Mexican inspectors discovered issues, including spoiled votes. One of the board’s worries is that the unions in charge of organizing these ballots are not impartial. The vote at the General Motors factory in Silao, Guanajuato, “brought the risks involved into clear light,” according to the study. The board proposed that the voting be conducted by government representatives, who would have the ability to investigate and correct any errors. It further advised that if a union commits any “severe infractions” during the voting, the contract be revoked. After US officials filed a complaint under USMCA labor standards, Mexico’s labor ministry notified GM’s union that it must re-vote before Aug. 20 or lose the contract, and it is working with the US on a remediation plan. Only a small percentage of the tens of thousands of contracts in Mexico that must be legitimized under the new regulations have gone to a vote so far, and the labor ministry has suggested that some unions may let contracts lapse. Even getting through the 80,000 to 100,000 contracts that are expected to go to a vote may take two years and a significant workload of more than 100 votes every day. Daina Beth Solomon contributed reporting, and Andrea Ricci edited the piece./nRead More

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