**ICON Tijuana Attempted to Leave Without Compensating Workers After Declaring Bankruptcy in the U.S.**
Following its shutdown in Tijuana, aerospace manufacturer ICON sought to evade its obligation to compensate its workers using legal “mechanisms” from its parent company in the United States. This was revealed by Alejandro Arregui Ibarra, the Secretary of Labor and Social Welfare (STPS).
Arregui Ibarra explained that ICON, which declared bankruptcy in the United States, aimed to apply U.S. laws in Mexico. “We engaged with the labor attaché of the U.S. Consulate in Tijuana because ICON’s case is atypical. Their U.S. subsidiaries declared bankruptcy, leading to the closure of their operations here. They attempted to avoid responsibility in Mexico by using legal strategies from the U.S.,” Arregui Ibarra stated.
Since July, 207 workers had gone four weeks without receiving their salaries, prompting them to file a complaint upon learning that the company intended to leave without compensating them according to the law. Arregui Ibarra emphasized, “Any company operating in Mexico, regardless of foreign investments, is constituted under Mexican laws and must adhere to them.”
The assets of ICON in Tijuana have been seized by authorities following a judge’s authorization. Currently, 60 workers continue to pursue their claims against the company for unpaid wages and compensation. A hearing with the company and state labor authorities is scheduled for October 24. Arregui Ibarra mentioned, “We are on a path that could potentially resolve the compensation and payments before then; that is our goal.”
In the last two years, at least 21 companies in Baja California have attempted to cease operations without compensating their workers, known as “swallow companies.” The state government has supported measures to penalize the executives and shareholders of such companies with jail time.
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**ICON Aerospace’s Bankruptcy Affects Workers in Tijuana**
Adding to the developing situation with ICON in Tijuana, the aerospace company has been reported to have used its U.S. bankruptcy filing to avoid paying Mexican workers. According to local sources, the company’s sudden closure left many employees in a precarious situation, leading to legal battles to secure their rightful compensations.
Sources indicate that ICON’s bankruptcy in the U.S. was used to sidestep financial responsibilities in Mexico, a tactic that has not gone unnoticed by authorities. Efforts are underway to ensure that companies cannot exploit international bankruptcy laws to the detriment of local labor rights.
The broader implications for the industrial sector in Tijuana are significant, highlighting the need for reinforced legal frameworks to protect workers from multinational entities attempting similar strategies. The upcoming October 24 hearing is seen as a critical step in this legal and social battle. Lawmakers and labor rights advocates are keenly watching the outcome, which could set a precedent for future cases.
Stay updated with TJGringo.com for the latest developments on this story and more insights into labor rights and international business operations in Mexico.