Concerns Over American Jobs Moving to Mexico

Recent plans by major manufacturers to increase production in Mexico have raised concerns among labor unions about the potential loss of American jobs. The United Automobile Workers (U.A.W.) union, a key supporter of President Biden, has criticized the administration’s decision not to address allegations of labor abuses by a Mexican subsidiary of Caterpillar, a leading agriculture equipment maker.

In a recent development, the U.A.W. voiced disappointment over the administration’s choice not to investigate complaints that the Caterpillar subsidiary had taken retaliatory actions against striking union members. Allegations included making it challenging for these workers to secure alternative employment, a practice akin to blacklisting.

Under the United States-Mexico-Canada Agreement, which succeeded the North American Free Trade Agreement, the U.S. has the authority to address such violations to prevent American companies from relocating jobs to Mexico in pursuit of weaker labor standards. The U.A.W. argues that the Biden administration’s decision not to act in this specific case could potentially signal to companies that moving operations to Mexico could be done without consequences.

Shawn Fain, President of the U.A.W., stated, “Caterpillar workers in Mexico are subjected to harassment and blacklisting for their efforts to stand up for their rights, with no support from the U.S.M.C.A.” The U.A.W. was part of a coalition of labor organizations that lodged the complaint.

While the Biden administration declined to comment on the specific complaint, it highlighted that it had pursued around two dozen other cases under the trade agreement. Caterpillar did not provide a response to requests for comments on the matter.