Recently, there has been a growing worry among labor unions as major manufacturers announce plans to increase production in Mexico. The fear is that American jobs might be outsourced. This situation has led to the United Automobile Workers (U.A.W.) union, a significant supporter of President Biden, criticizing the administration’s decision regarding labor abuses by a Mexican subsidiary of Caterpillar, an agriculture equipment manufacturer.
In a concerning development, the Biden administration chose not to pursue allegations of labor abuses against the Mexican subsidiary. This decision has disappointed the U.A.W., which had raised concerns about the subsidiary’s treatment of striking union members. The accusations included claims of retaliation through making it challenging for the workers to secure alternative employment, essentially blacklisting them.
The United States-Mexico-Canada Agreement, a successor to NAFTA, includes provisions aimed at addressing such labor violations. By enforcing these provisions, the U.S. aims to discourage American companies from moving jobs to Mexico in pursuit of weaker labor protections. The U.A.W. argues that by not utilizing its authority under the trade agreement in this particular case, the Biden administration may inadvertently signal to companies that relocating work is acceptable.
Shawn Fain, the U.A.W. president, expressed dismay, stating that Caterpillar workers in Mexico are facing harassment and blacklisting without support from the USMCA. Despite several labor groups, including the U.A.W., lodging complaints, the Biden administration chose not to comment on this specific case but highlighted its pursuit of twenty-four other cases under the trade agreement. Caterpillar has remained silent on the matter despite requests for comment.
