UAW President: Wave of New Auto Investment in Mexico Problematic -- Update

By Christina Rogers 

The United Auto Workers president said Thursday the wave of new auto investment in Mexico is problematic and will be central to labor talks this summer with the Detroit car makers.

Dennis Williams, speaking to reporters in Detroit, said he recently met with White House officials to press his concerns, noting that he would like to see the U.S. to put more pressure on Mexico to improve wages and labor conditions.

"Mexico is going to continue to be an issue for us," Mr. Williams said at a ceremonial handshake event marking the opening of contract talks with Ford Motor Co. "They've got good laws that they don't enforce."

Car makers, hoping to take advantage of lower wage rates and proximity to the U.S. market, have announced billions of dollars in new auto investment in Mexico over the last few years -- often at the expensive of allocating new jobs to the U.S.

Two weeks ago, Ford revealed plans to move production of its compact Focus from Michigan to another location outside the U.S., likely Mexico. General Motors Co. has also announced plans to invest $3.6 billion through 2018 in Mexico, seeking to double its production capacity there.

"Am I happy about it? No," Mr. Williams said. "I want everything to be built in the United States of America, including tennis shoes."

His comments come as the UAW gets to work negotiating a new four-year labor agreement with Ford, General Motors Co. and Fiat Chrysler Automobiles NV. Securing jobs for U.S. workers will be a priority for the UAW at a time when the union is also seeking better wages for the 137,000 members working at the U.S. auto makers' plants.

Ford executives say the company has already exceeded the commitments made in the last 2011 agreement, adding 15,000 jobs and investing $6.2 billion in U.S. auto plants over the last four years.

"We have to look at our overall business," said Ford's manufacturing chief John Fleming. "We have to look at how can we best improve profitability of the company."

Write to Christina Rogers at [e-mail]

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