Background on Nissan and its Mexican Operations
Nissan, a Japanese automotive manufacturer, has operated in Morelos, Mexico for nearly 60 years through its CIVAC plant. Recently, Nissan de México announced the closure of its operations, posing a significant challenge to Mexico’s new labor model that began in 2019, according to Óscar de la Vega, a labor specialist at D&MAbogados.
Causes of Plant Closure
De la Vega explained that the closure is largely due to reduced exports of products and services resulting from tariffs imposed by the U.S. government. This reduction in operations will affect the workforce across the country.
Legal Framework and Procedures
Under the Federal Labor Law, termination of employment due to “force majeure” (unforeseeable circumstances) not attributable to the employer must follow a special collective procedure. This is a streamlined process where the employer needs to prove the force majeure causing workforce reduction.
Nissan’s Announcement and its Implications
On July 29, Nissan announced that it would consolidate vehicle production in its CIVAC plant in Aguascalientes, Mexico, and transfer all vehicle production to the Aguascalientes complex by the end of fiscal year 2025. De la Vega stated that this collective termination, resulting from obvious unfeasibility, should trigger an economic collective conflict.
Impact on Workers and Indemnifications
The labor specialist highlighted that this situation might bring changes in severance packages. Workers will receive three months and 12 days of compensation per year, instead of the usual four weeks per year. These complex matters will test the new labor court judges.
Employer’s Commitment
In a letter to employees, Nissan assured full compliance with labor regulations and offered necessary support for affected workers. The company has been planning this shift for over a year, with some analysts linking it to the current geopolitical climate and uncertainty over U.S. President Donald Trump’s tariffs.
Special Collective Procedure
As per the explanation, Nissan workers must undergo a special collective procedure, a summary process where the employer must prove the force majeure causing workforce reduction.
Key Questions and Answers
- What is the reason for Nissan’s plant closure in Mexico? The primary cause is reduced exports due to tariffs imposed by the U.S. government, affecting Nissan’s operations in Morelos, Mexico.
- What legal framework applies to this situation? The Federal Labor Law governs these processes, requiring a special collective procedure when termination results from “force majeure” not attributable to the employer.
- How will this closure impact workers? Workers will receive a reduced severance package of three months and 12 days per year, instead of the usual four weeks. This situation will test Mexico’s new labor court judges.
- What is the timeline for Nissan’s plant consolidation? Nissan plans to transfer all vehicle production in Mexico to the Aguascalientes complex by the end of fiscal year 2025.
- What support does Nissan offer affected workers? Nissan has committed to full compliance with labor regulations and providing necessary support for workers impacted by this decision.
