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Germanwatch vs. Continental AG

Case overview

Date filed 27 May 2002
Current status Concluded
Issue Continental AG's labour practices in Mexico
Summary of the case 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.


Developments/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.
Relevant OECD Guidelines
Case keywords Labour rights, Human rights, Disclosure of information, Multiple NCPs

NCP Information

NCP name National Contact Point Mexico
NCP address Insurgentes Sur 1940 CP 01030 Mexico, D.F , Mexico
NCP website http://www.economia-snci.gob.mx/
Other NCPs involved

Complainants

NGO
Trade union

Company Information

Company responsible Continental AG
Company address Vahrenwalder Strasse 9
30165 Hanover
Germany
Company website http://www.conti-online.com/generator/www/start/index_uv.html
Company in violation Continental AG
Country of operations Mexico
Other companies involved

Timeline of developments

Some developments are only visible to logged in users.
Date Actor Action Description Document
19 January 2005 National Contact Point Mexico statement The conflict is settled in the presence of the Mexican President Vicente Fox.  
18 January 2005 Germanwatch press release FIAN and Germanwatch's press release download pdf (12Kb)  
27 May 2002 Germanwatch file Complaint filed with German NCP.  

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