Liquidation Suspended for Imports From Goodyear San Luis Potosi
The Biden administration is using the USMCA rapid response mechanism in the case of a Goodyear factory in San Luis Potosí, arguing that the way Goodyear can ensure its tires' eligibility for tariff benefits is to grant the countrywide rubber workers' contract.
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“In rejecting the collective bargaining agreement, the workers at the Goodyear rubber tire facility in San Luis Potosi have expressed their will. We now look to Goodyear to treat their workers fairly and apply the sectoral agreement,” said Thea Lee, deputy undersecretary for international affairs at the U.S. Department of Labor.
Mexico already acted to address a Goodyear union petition last month, before the U.S. took a position on it (see 2304270075), but that petition was narrowly focused on election irregularities as the plant's workers had the opportunity to vote for an independent union or retain the union that had represented them for years.
The site had a second election, and the incumbent union, and its contract, were rejected.
As the U.S. waits for the Mexican government's response, and for a settlement with the company, liquidation is suspended for imports from this Goodyear factory.