Germany: Mexican union files claim in German court

Workers at ContiTech in Mexico, a supplier to auto companies such as Mercedes and BMW, have filed a complaint under the USMCA’s Rapid Response Mechanism. This highlights the intersection of international trade agreements and local labour rights.

Driving the news: The allegations involve support for a “protection” union affiliated with CTM, opposed by an independent union, LSOM. This case is notable as it also involves a complaint under Germany’s Supply Chain Act, a rare occurrence for German companies operating abroad.

Details: The complaint is supported by the US union United Steelworkers and the International Network of Labor Lawyers, emphasizing international solidarity in labor rights.

What’s next: With the EU’s Corporate Sustainability Reporting Directive set to require disclosures on collective bargaining by 2025, similar cases are expected to rise, potentially increasing scrutiny on companies’ global labor practices.

In other news: A German court has ruled against ex-VW managers demanding pay hikes and bonuses, citing the need for contractual changes. This decision aligns with VW’s restructuring efforts amid declining sales, involving plant closures and significant job cuts.

ADDITIONAL INFORMATION:

Here is a report, [in Spanish] on the ContiTech case.