DOL Firms Up Trade Deal Wage Rules For Automakers

Law360 (June 29, 2020, 8:01 PM EDT) -- The U.S. Department of Labor on Monday fleshed out the details of a critical rule in the U.S.-Mexico-Canada trade agreement that requires automakers to pay a certain percentage of their workforce a competitive wage in order to earn duty-free treatment for their cars and trucks.

The USMCA goes into effect on Wednesday and is the first U.S. trade deal to condition duty-free treatment on wages. To qualify, passenger vehicle manufacturers and truck producers will have to pay at least 25% and 30%, respectively, of their production workforce an average of $16 per hour and keep records that are used for their...

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