Hogan Lovells advises Cardone and Tridonex in negotiating plan with USTR
Hogan Lovells has counselled Cardone Industries and Tridonex on a voluntary action plan agreement with the USTR following the USMCA labour petition
Hogan Lovells, through its international office in Washington D.C., as well as its Mexico City office, has advised automotive aftermarket manufacturer Cardone Industries, Inc. and its Mexican subsidiary, Tridonex, S. de R.L. de CV, on the complex regulatory and policy dimensions of a petition filed under the Rapid Response Labour Mechanism (RRLM) of the United States-Mexico-Canada Agreement (USMCA), which led to the successful negotiation of a voluntary action plan with the United States Trade Representative (USTR).
The petition, originally filed in May by the AFL-CIO and other labour stakeholders, was one of the first complaints filed under the RRLM since the USMCA took effect last summer to replace the North American Free Trade Agreement.
Cardone, taking into account its commitment to workers’ rights, voluntarily agreed to implement new measures at its facility in Matamoros, State of Tamaulipas, Mexico, to advance important labour reforms in Mexico and labour standards in the USMCA. The company admits no fault or liability with respect to the issues raised in the petition and does not believe there has been a denial of workers’ rights at the facility.
It will take an action plan that includes commitments to support workers’ freedom of association and right to collective bargaining, proactive outreach on the collective bargaining agreement, additional compensation for certain eligible workers, and the continuation of Tridonex’s robust efforts to ensure the safety of COVID-19 workers.
Jessica Cicali, vice president, general counsel and corporate secretary at Cardone, said: “The Hogan Lovells team’s deep experience in navigating the US regulatory and political systems involved in this negotiation, coupled with their unparalleled understanding of how the USMCA affects the automotive industry, allowed them to provide us with nuanced and actionable advice that ultimately led to this positive outcome […] With our commitment to this voluntary action plan, we look forward to continuing to support our employees on both sides of the border as we work together to provide our customers with high-quality products. “
Hogan Lovells’ Washington D.C. team included International Trade and Investment partners Kelly Ann Shaw, Jonathan Stoel and Jared Wessel. Mexico City’s team consisted of partners Juan Francisco Torres Landa (pictured left) and Hugo Hernández-Ojeda Alvírez (pictured right). Government Relations and Public Affairs partner Ivan Zapien and senior counsel Norm Coleman also provided key assistance.
