Protection Contracts Stymie Independent Unions in Mexico

Workers from the Johnson Controls Inc. (JCI) assembly plant in Puebla, Mexico continue to publicly demand their right to freedom of association and respect and recognition of the worker-led coalition, the Organizing Coalition of Workers of Johnson Controls (COT-JC).  Workers at this U.S. owned plant have been struggling for years to form a democratic union to replace the employer protection union onsite. 

“Workers at Johnson Controls have reportedly been fired for simply asking to see a copy of their collective bargaining agreement,” stated USLEAP Program Coordinator Lupita Aguila, “This is a Fortune 500, publicly-held U.S. company whose actions at the Puebla plant have exposed its lack of respect for one of the most basic worker rights.” 

In Mexico, labor and academic experts estimate that about 90% of all collective bargaining agreements in Mexico are negotiated with company-funded unions whose sole purpose is to protect corporate interests.  Independent unions can wait up to 10 years to be legally recognized by the government while employer-backed protection unions are normally recognized almost immediately.  U.S. owned companies comprise 60% of the mulinational corporations operating in Mexico, many of which allow protection contracts.

USLEAP was invited to participate in a forum on protection contracts, Investment and Labor Impunity in Mexico: Multinational Corporations and their Protection Contracts (Spanish), held in Mexico City October 2009.  One of the cases highlighted during the forum was the case of workers from the Johnson Controls Inc. automotive interiors plant in Puebla, Mexico.  There are numerous complaints regarding wages and working conditions.  Workers primarily continue to press for an autonomous and socially democratic union that will truly represent the interests of the workers.   

The Coalition was first formed in 2006, and grew stronger in 2007 after the company began to increase quotas that led to an increase in overtime work.  Current company policy allows the company to “bank” overtime hours when production is high and then repay them later as straight time  when production softens – meaning the workers lose the overtime pay.  The company also implemented a system of four 12-hour shifts in May 2007.

The COT-JC also reports a high level of gender discrimination particularly against pregnant women.  Pregnant women at the JCI plant have to wear different color clothing in comparison to their counterparts.  Though the company states this is a safety precaution, pregnant women are still expected to work under the same conditions and meet the same quotas as other workers, including overtime work.  The Worker Support Center (CAT) has documented eight cases of pregnant workers who were required to work 12-hour shifts, standing the entire time.  Four of these workers suffered miscarriages.

At the union’s request, USLEAP began intervening with the Milwaukee-based company in July 2009.  In a November 2009 letter to JCI President and CEO Stephen Roell, the COT-JC expressed again its long-standing interest in meeting with company management at the Milwaukee headquarters to discuss the labor rights violations stated above, among other issues.  As of date, Johnson Controls Inc. has not responded to a meeting request.

The forum on protection contracts brought together SEIU, the Maquila Solidarity Network (MSN), United Autoworkers Union (UAW), the International Mineworkers Federation (IMF), Netherlands Trade Union Confederation (FNV), the Friedrich Ebert Foundation (FES) and others from the international worker rights community to discuss strategies on how to combat the ongoing issue of labor rights violations in Mexico, particularly around the use of protection contracts by multinational corporations.  Participants of the forum agreed to continue to work with the workers from the COT-JC in their attempts to meet with management from JCI in Milwaukee, WI.