By Daina Beth Solomon

MEXICO CITY, (Reuters) – A Mexican union asked for an investigation by the U.S. government into a Panasonic OTC: plant. This is the latest dispute in a string of cases that seek to exploit a new deal in order to improve Mexican workplace conditions. SNITIS, a Mexican union, claimed that a Panasonic plant at Reynosa, bordering Mexico, violated the 2020 United States Mexico-Canada Agreement (USMCA). It signed a union contract without workers and fired several dozen protestors.

Rosario Moreno (head of SNITIS), a union created out of dissatisfaction among workers with the traditional labor organizations in northern Tamaulipas, said, “It is important to keep U.S. Government informed that worker rights have been violated.”

Moreno spoke out about the Panasonic contract with SIAMARM, stating that “they were given a contractual they didn’t even understand.”

A spokesperson for the Biden administration said Monday that the U.S. government was looking into the petition.

Panasonic Corporation of North America stated that it is committed to Mexico’s labor laws, collective bargaining processes, and has “the strongest interest” to ensure employees have the freedom to bargain collectively.

The dispute is between SIAMARM, SNITIS, and Panasonic. Nearly 1,900 workers work at Panasonic’s Reynosa facility, which makes automotive audio and display systems mainly for export to the United States and Canada.

The Tamaulipas labor Board and Panasonic both confirmed that the agreement was legal.

After replacing 1994 NAFTA with the USMCA in 1994, tougher labor regulations were introduced to allow Mexican workers to ask for better wages after long periods of stagnation. They also help to prevent low labor costs from stealing more U.S. jobs.

This agreement was made contingent upon Mexico’s support of a major labor reform. It is designed to break the control of dominant unions, accused of coddling with employers. Workplaces that do not ensure workers rights may be subject to tariffs and other penalties.

Last year, the United States initiated its first USMCA investigations into Mexican labor violations. It demanded better protections for workers amid disputes between unions at General Motors (NYSE:), and Tridonex (a U.S.-owned auto parts manufacturing plant).

Rethink Trade, a U.S. nonprofit that advocates for corporate accountability and pushes for it, signed the petition along with SNITIS.

Panasonic was unable to resolve its dispute after workers rejected the union contract in a vote.

Labor reform calls for such votes to eliminate the practice of companies and unions signing “protection agreements” that are not in the workers’ best interests.

The labor authorities scheduled a vote for April 21-22 so workers could choose from two unions vying for the contract – SIAMARM and SNITIS.

SNITIS, however, claims Panasonic entered into a contract to SIAMARM before the April elections and started withholding worker dues.

SIAMARM is part of the Confederation of Mexican Workers (CTM), one of Mexico’s largest labor organizations. We were unable to reach them for comment. According to the Facebook page of the group (NASDAQ:), it works for members’ well-being.

The contract was seen by Reuters. Salaries start at 261.49 pesos (13.10) per day – just above Mexico’s minimum wage of 260.34 pesos. For the most senior positions, 315 pesos ($15.81/day) are earned.

($1 = 19.9250 Mexican Pesos