Backgrounder – Public Statement by Fräenkische Industrial Pipes 

On May 24, 2023, FRAENKISCHE Industrial Pipes Mexico (FIP Mexico) released the following statement with regard to the complaint submitted under Annex 31-B (Canada-Mexico Facility-Specific Rapid Response Labour Mechanism) of the Canada-United States-Mexico Agreement (CUSMA):

“FIP Mexico in Silao, Guanajuato, is committed to the compliance of international labour standards and rights, which include the Mexican Federal Labour Law and other applicable regulations. 

For FIP Mexico, the effective exercise of our employees’ rights is paramount, and our employees must be able to freely elect and belong to the union of their choice without facing discrimination or retaliation from other employees or managers of the company. 

FIP Mexico does not tolerate any unlawful restriction on the freedom of association and collective bargaining rights of our employees.

FIP Mexico is and will remain neutral in all union activities and inter-union disputes by providing equal opportunities to each interested union and all employees.

FIP Mexico does and will continue to ensure that our employees’ rights are respected in accordance with the obligations established by law and continue to provide the necessary conditions for the proper participation of our employees in all voting processes and union activities.

FIP Mexico will sanction any action or omission by any employee or manager that violates the beforementioned employment prerogatives. In consequence, FIP Mexico will notify the Mexican Labour Ministry any identified violation.

In line with the previous commitments, FIP Mexico, in collaboration with the Federal Centre for Conciliation and Labour Registry (CFCRL), will continue to provide training to all our employees and managers for the purpose of informing our employees of their employment rights pursuant to the freedom of association and collective bargaining rights. FIP Mexico will also continue to provide such training to the Human Resources personnel.

In terms of the foregoing, FIP Mexico will continue to inform our employees of the existence of the FIP Anonymous Whistleblowing System, available through the company’s website as follows: [https://www.bkmssystem.com/bkwebanon/report/clientInfo?cin=Xxe0lL&c=-1&language=spa] for the purpose of reporting any violation to the beforementioned employment prerogatives, which may also be addressed before the CFCRL through the following address: inconformidades@centrolaboral.gob.mx 

With regards to the ongoing inter-union dispute before the Federal Labour Courts, FIP Mexico respects the authorities’ decision regarding the federal jurisdiction of the proceeding and will not interfere in any activities relating to the election of a union by our employees.

FIP Mexico will abide for any determination, resolution or measure imposed by the relevant authorities in connection with the ongoing inter-union conflict and any election process that may result from said proceeding, in consideration of the company’s safety and operational requirements.

FIP Mexico reaffirms that we will maintain high standards of compliance with labour laws and respect towards our employees and regarding all activities related to our operations in the country.”