UAW Criticizes Biden Administration For Not Pursuing Labor Abuse Complaint Against Caterpillar

The United Auto Workers (UAW)union is calling out the Biden administration for not pursuing accusations of labor abuses by a Mexican subsidiary of Caterpillar Inc. CAT, a U.S. manufacturer of earth-moving equipment.

In late June, the administration told a group of unions that it would not follow up on the complaint that the subsidiary retaliated against striking union members by making it difficult for them to find other jobs through blacklisting, the New York Times reported.

Government policing of such violations under the U.S.-Mexico-Canada Agreement is intended to discourage American employers from moving jobs to Mexico for weaker labor protections.

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The UAW argues the Biden administration may be encouraging companies to relocate work by declining to respond to the union complaint, the New York Times reported.

Caterpillar workers in Mexico "face harassment and blacklisting for daring to stand up, with no help from the U.S.M.C.A.," Shawn Fain, the president of the UAW, said in a statement. The UAW was among several labor groups that rose the complaint.

The Biden administration declined to comment on the complaint, but pointed to two dozen other cases it had pursued under the trade agreement.

Caterpillar did not respond to Benzinga’s requests for comment on Tuesday.

Price Action: Caterpillar gained 2.15% to $353.20 in Tuesday’s mid-morning trading.

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Amplify CWP Enhanced Dividend Income ETF DIVO advanced 0.96% and Inspire 100 ETF BIBL picked up 0.19%.

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