Home Complaints database Germanwatch vs. Continental AG
Complaint

Germanwatch vs. Continental AG

Continental AG’s labour practices in Mexico

Date filed
27 May 2002
Keywords
Countries of harm
Current status
No resolution
Sector
NCP

Allegations

Continental’s subsidiary, Euzkadi, closed its tire factory in Mexico without proper notification to employees and trade unions. Prior to the closure, problems between Continental and the trade union had existed. One month after Euzkadi closed the factory, the trade union went on strike. Furthermore the closure was not in accordance with Mexican laws.

Relevant OECD Guidelines

Outcome

The complaint was accepted by the German NCP in May 2002, but later transferred to the Mexican NCP in June 2002. After a lengthy legal battle, Mexico’s highest court ruled the closure was “existent” in February 2004, which has been interpreted by Mexican lawyers that the closure was illegal.

The conflict was settled in the presence of the Mexican President Vicente Fox in January 2005. After a three-year strike against the illegal closure of the factory, the workers have achieved the fulfillment of their most important demands: the factory has been reopened and they are back to their jobs. The workers have received a total of 50 percent in shares of the tire factory.

Although this case was not resolved by the German or Mexican NCPs, the complainants believe the case served as a tool for international pressure.

More details

Defendant
Company in violation
Other companies involved
Complainants
Affected people
Other NCP's where the complaint was filed
Date rejected / concluded
19 January 2005

Documents

  • statement
    19 January 2005

    The conflict is settled in the presence of the Mexican President Vicente Fox.

    NCP Mexico
  • press release
    18 January 2005

    FIAN and Germanwatch's press release

    Germanwatch
  • file
    27 May 2002

    Complaint filed with German NCP.

    Germanwatch