Panasonic Employees in Mexico Elect An Independent Union, Defeating The Country's Largest Labor Organization

The union SNITIS, which was formed in response to worker dissatisfaction with traditional labor organizations in the northern state of Tamaulipas, won 75% of votes in a two-day election in which 2,150 people were eligible to vote, Mexico's federal labor center said late Friday.

SIAMARM, a competing group that is affiliated with the 86-year-old Confederation of Mexican Workers (CTM), won 25% of the factory, which manufactures car audio and display systems primarily for the United States and Canada.

The outcome follows similar votes against CTM at a General Motors (NYSE:GM) plant in the central state of Guanajuato and at Tridonex's auto parts plant in Tamaulipas, both of which faced US scrutiny for alleged worker rights violations under the United States-Mexico-Canada Agreement (USMCA), which took effect in 2020. [nL1N2V40DO]

SNITIS won the Tridonex election in February with nearly 87 percent of the vote, igniting a chain reaction among union leaders.

"This has been overwhelming, just as the result at Tridonex was, and we hope it continues to be so at all factories that join this new era of independent unionism," SNITIS founder Susana Prieto said in a social media video following the Panasonic vote results.

Panasonic stated in a statement that it respects and supports its employees' right to free association and looks forward to working with SNITIS once it becomes the factory's new union.

CTM did not respond immediately to a request for comment, and SIAMARM was unable to be reached.

Alberto Lara, the head of SIAMARM, stated on social media prior to the vote that he would protect vulnerable workers and would offer the best contract.

SNITIS last week urged the US government to investigate allegations of worker rights violations at the Panasonic plant, the latest in a series of disputes aimed at leveraging the USMCA to improve working conditions in Mexico.

Panasonic's union election this week follows a vote last year in which employees rejected their previous union contract.

Such votes are mandated by a recent Mexican labor reform aimed at putting an end to the once-pervasive practice of unions and businesses signing "protection contracts" without the knowledge of workers.