Manufacturing plant closure in Mexico
Lead NCPMexico
Supporting NCP(s)Germany
DescriptionSpecific instance notified by a trade union regarding the activities of a German multinational enterprise operating in Mexico.
Theme(s)Employment and industrial relations
Date1 May 2002
Host country(ies)Mexico
SourceTrade Union
Industry sectorManufacturing

In May 2002, the German NCP received a request for review from a trade union alleging that a German multinational enterprise had breached the employment and industrial relations provisions of the Guidelines in Mexico by closing its Mexican subsidiary due to economic losses and the lack of co-operation of the workers with a view to renegotiating the collective contract. The trade union argued that the plant was closed in violation of the domestic law and instigated a strike.

Due to procedural reasons it was determined that the Mexican NCP would lead the review with the support of the German NCP. The relevant authorities in Mexico were consulted and meetings were held with the parties involved and with other governmental agencies.

After several months of negotiations, the Mexican subsidiary was taken over by a joint venture formed between a Mexican company and a co-operative of former workers. The German company supported this process as a technical adviser. The conflict was settled on 17 January 2005 and the specific instance was concluded.