**Icon Tijuana’s Attempt to Skip Worker Compensation in Bankruptcy Case**
After halting operations in Tijuana, aerospace manufacturer Icon attempted to evade its obligation to compensate its workers by using “legal loopholes” stemming from its parent company in the United States, said Alejandro Arregui Ibarra, Secretary of Labor and Social Welfare of Baja California (STPS).
The company declared bankruptcy in the United States and sought to apply U.S. laws in Mexico, which sparked concerns among local authorities. “We contacted the labor attaché of the U.S. Consulate in Tijuana because Icon’s case is unusual. Their U.S. affiliates declared bankruptcy and ceased operations here, attempting to use legal loopholes to evade responsibility in Mexico,” explained Arregui Ibarra.
Since July, 207 workers have gone without wages for four weeks, leading them to file a lawsuit after learning of the company’s intention to leave the city without providing legally mandated severance payments.
“Any company operating in Mexico, even if it involves foreign investment, is subject to Mexican laws and must comply accordingly,” emphasized the STPS official.
The assets of Icon in Tijuana have been seized by the authorities following judicial authorization. Currently, 60 workers continue legal proceedings against the company over unpaid wages and severance.
A hearing is scheduled for October 24th, involving the company and the state labor authorities. “We are on a path that may allow for compensation and payment before the hearing. That’s our goal,” noted Arregui Ibarra.
Over the past two years, at least 21 companies in Baja California have attempted to close operations without compensating their workers, a practice known as “swallow companies” (empresas “golondrina”). As a preventive measure, the state government is pushing for prison sentences for the directors and partners of such companies.
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**Additional Report: Increased Bankruptcy Cases Raise Concerns in Tijuana**
The recent bankruptcy declaration by Icon Tijuana has shed light on a growing trend where companies attempt to shutter operations in Mexico without compensating their employees. While the Icon Tijuana case is under scrutiny, local authorities and labor rights advocates are urging more robust legal frameworks to prevent such occurrences.
Local labor unions have highlighted several instances where foreign-owned companies evade financial obligations by declaring bankruptcy in their home countries. This maneuver often results in lengthy legal battles, leaving workers without means to support themselves in the interim.
A significant part of the problem, as pointed out by labor experts, is the lack of international enforcement mechanisms that can swiftly address cross-border bankruptcy complications. They advocate for enhanced bilateral agreements that ensure worker rights are protected irrespective of the company’s country of origin.
Authorities have reiterated the importance of foreign companies adhering to Mexican labor laws and stressed that any attempts to manipulate the system to avoid responsibilities will be met with legal action. In response, some legislators are proposing amendments to incorporate stricter penalties for companies that exit the market unethically.
These cases are a call to action for both local governments and international watchdogs to ensure that globalization does not come at the cost of worker rights and fair employment practices.
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