Panasonic

Panasonic factory union in Mexico calls off strike after pay deal

A man reflects on the Panasonic logo at the Panasonic Center in Tokyo, Japan, February 2, 2017. REUTERS/Kim Kyung-Hoon

Join now for FREE unlimited access to Reuters.com

Register

MEXICO CITY, June 10 (Reuters) – The newly elected union at a Panasonic auto parts plant (6752.T) in the border town of Reynosa, Mexico, ended a strike that was due to start on Friday morning after the company had agreed to a new agreement. on pay, Panasonic and the union said.

The agreement offers employees a 9.5% wage increase and a one-time bonus totaling 3.5% of employees’ annual wages, the union said. Panasonic confirmed the terms to Reuters.

The company said in a statement that it was happy to have reached the agreement.

Join now for FREE unlimited access to Reuters.com

Register

“It’s a historic moment,” union founder Susana Prieto said in a video shared on Facebook.

Under the new agreement, employees who were fired while the old union operated at the plant would also be rehired if they wished and have their wages returned, Prieto said.

The deal comes weeks after the United States asked Mexico to investigate the plant for violating the United States-Mexico-Canada Trade Agreement (USMCA), raising concerns that employees are being denied the right to free association and collective bargaining. Read more

The independent union SNITIS won a landslide victory at the factory in April, adding to a recent wave of victories against the country’s mainstream unions. Read more

In February, another independent union won at a General Motors pickup truck plant in Silao, Mexico. The union and GM agreed to an 8.5% wage hike in May. Read more

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Daina Beth Solomon; Written by Kylie Madry; Editing by Emelia Sithole-Matarise and Edmund Blair

Our standards: The Thomson Reuters Trust Principles.