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Text of USMCA Chapter 23 on Labor; Text of Rapid Response Mechanism; links to Mexican Ministry of Labor webpages on Reforma Laboral (Labor Reform) and the Rapid Response Mechanism; US Department of Labor and USTR webpages on the Rapid Response Mechanism; Canada’s National Administrative Office (NAO) webpage on labor provisions in Canada’s FTAs, including USMCA; and other resources surveying the application of the Rapid Response Mechanism.
Individual case pages follow on this webpage.
Read moreFebruary 16, 2024: USTR announced that the US had asked Mexico to review whether workers at RV Fresh Foods S.A. de C.V. plant, which produces guacamole in Uruapan in the state of Michoacán, are being denied right to freedom of association and collective bargaining. This is the first RRM request in the processed food sector. Links: USTR press release; US request for RRM review; USTR letter to US Treasury Department directing suspension of guacamole imports from RV Fresh Foods plant.
According to USTR press release, January 17 petition, by Mexican union Sindicato Nacional de Trabajadores y Empleados de la Industria del Comercio, Alimenticia, Textil, Automotriz, Metalúrgica, Servicios y Distribución Generalísimo José María Morelos y Pavón and union confederation Confederación Central Nacional (COCENA), alleged that RV Fresh Foods interfered with union activities by e.g. restricting union access to the plant and intervening union delegate election process. US government then determined that there is sufficient, credible evidence of a denial of rights.
January 18, 2024: USTR announced request to Mexico to review whether workers at two locations of Atento Servicios, S.A. de C.V. in Pachuca, state of Hidalgo, are being denied the right to freedom of association and collective bargaining. These two locations offer call center services to BBVA Mexico, a subsidiary of BBVA Group. US request responded to December 18, 2023 petition from Sindicato de Telefonistas de la República Mexicana (STRM), alleging that Atento interfered in union activities and unjustly dismissed workers for supporting STRM and as a retaliatory measure for engaging in organizing efforts. Links: USTR request to Mexican government. (USTR did not request suspension of liquidation; telecommunications transmissions are not dutiable.)
January 30: Mexican government announced acceptance of request for review. Link: Ministry of Economy announcement.
December 14, 2023: USTR announced that US had asked Mexico to review whether workers at Fujikura Automotive Mexico S. de R.L. de C.V. facility in Piedras Negras, Coahuila are being denied the right to freedom of association and collective bargaining, including through company blacklisting or otherwise retaliating against workers based on their previous union activity at their prior employer, Manufacturas VU. This was the thirteenth Rapid Response Mechanism request for review in 2023.
USTR requested that Treasury Department suspend liquidation of entries of goods from the Fujikura facility, which produces automotive wire harnesses and cables with about 5,000 employees across three plants.
December 14 request stemmed from November 13 petition by Mexican worker rights organization Comité Fronterizo de Obreros, and US monitoring of effects of closure of the Manufacturas VU plant. Links: USTR press release; US Labor Department press release; US request for review; USTR letter to Treasury requesting suspension of liquidation.
December 22: Ministry of Economy announced acceptance of request for review.
January 30, 2024: Mexican Ministry of Economy/Ministry of Labor announced conclusion of investigation of labor conditions at Fujikura Automotive Mexico plant in Piedras Negras.
Investigation found insufficient evidence of actions constituting violation of Mexican labor law or denial of rights to freedom of association and collective bargaining. Nevertheless, to strengthen capacity of company, workers and union, Fujikura issued letter of commitment to union neutrality and guidelines for conduct by company personnel; strengthened dissemination of policy on discrimination, harassment, and equal opportunity; and trained workers on neutrality charter and conduct guidelines. Ministry of Labor trained workers on rights to freedom of association and collective bargaining in Mexico; trained company HR staff on rights to freedom of association and collective bargaining; and trained Fujikura union delegates from four plants in Coahuila on rights to freedom of association and collective bargaining. Mexican government therefore determined that in spite of lack of evidence of denial of rights to freedom of association and collective bargaining, Fujikura had shown its commitment to respect these rights.
January 30: Mexican Ministry of Economy/Ministry of Labor announced conclusion of investigation of labor conditions at Fujikura Automotive Mexico plant in Piedras Negras. Announcement stated that investigation found insufficient evidence of actions constituting violation of Mexican labor law or denial of rights to freedom of association and collective bargaining.
Nevertheless, to strengthen capacity of company, workers and union, Fujikura issued letter of commitment to union neutrality and guidelines for conduct by company personnel; strengthened dissemination of policy on discrimination, harassment, and equal opportunity; and trained workers on neutrality charter and conduct guidelines. Ministry of Labor trained workers on rights to freedom of association and collective bargaining in Mexico; trained company HR staff on rights to freedom of association and collective bargaining; and trained Fujikura union delegates from four plants in Coahuila on rights to freedom of association and collective bargaining. Mexican government therefore determined that in spite of lack of evidence of denial of rights to freedom of association and collective bargaining, Fujikura had shown its commitment to respect these rights.
US Embassy labor attaché commented that US government would need to review these results and that the review has not yet been concluded.
February 13: Mexico and US jointly announced successful closure of this investigation. Announcement by Ministry of Economy/Ministry of Labor and Social Welfare stated that after consultations between Mexico and the United States on the content of the investigation and the additional actions mentioned above, both governments agreed to close this case. Press release by USTR stated that “As a result of the above actions taken by the facility and the Government of Mexico to resolve the issue, the United States agrees that there is no ongoing denial of rights.” This is the first RRM case in which the US has agreed that even though it accepted an RRM petition, there was no denial of rights.
USTR requested that Treasury Department resume liquidation of imports from the Fujikura plant at Piedras Negras.
November 21: USTR announced that US has asked Mexico to review whether workers at the Autoliv Steering Wheels Mexico facility in El Marqués, Quéretaro are being denied the right to freedom of association and collective bargaining. Request responded to Oct. 20, 2023 petition by Transformación Sindical labor union. Links: US request; USTR press release; US Labor Department press release with details on alleged company actions denying labor rights; USTR request to Treasury Department to suspend liquidation of entries from this plant.
December 1: Ministry of Economy announced acceptance of request for RRM review concerning Autoliv Steering Wheels Mexico facility in Querétaro.
January 22: US and Mexico announced successful resolution of Rapid Response Mechanism review at Autoliv Steering Wheels Mexico facility in El Marqués, Querétaro state. USTR notified Treasury to resume liquidation of entries from that plant. Links: USTR press release; Mexican Ministry of Economy/Ministry of Labor press release. Mexican government had finalized its report on this proceeding on January 4, describing actions taken by management and the Mexican government, including: reinstatement of 3 unjustly dismissed workers with full backpay and benefits; severance for seven others who chose not to return to the plant; company neutrality statement and related guidelines; trainings on freedom of association and collective bargaining rights at the plant.
October 26, 2023: USTR announced that US had asked Mexico to review whether workers at Tecnología Modificada S.A. de C.V. in Nuevo Laredo (subsidiary of Caterpillar Inc.) are being denied the right to freedom of association and collective bargaining. This plant refurbishes electronic mechanical parts used in Caterpillar tractors, earth movers and other heavy equipment. Caterpillar statement: “Caterpillar upholds the principles of good faith bargaining and workers' rights. We are actively engaged with the United States and Mexican governments to ensure swift resolution and our continued compliance with country laws wherever we operate.”
US request responded to Sept 25, 2023 petition by union Sindicato Nacional Independiente de Trabajadores de Industrias y Servicios “Movimiento 20/32” (SNITIS), alleging that the plant dismissed an employee in retaliation for union organizing activity, and in response to SNITIS-led strike that started Sept. 22, had offered to pay non-striking workers who stay home, but not strikers. Links: US request; USTR press release; US Labor Department press release; USTR request to Treasury Department to suspend liquidation of entries from this plant; Reuters report including Caterpillar statement; El Universal
November 7, 2023: Ministry of Economy announced acceptance of the request for review.
December 22: US and Mexico announced successful resolution of the Rapid Response Mechanism review at Tecnología Modificada. USTR notified Treasury Department to resume liquidation of entries from that plant. Actions by plant management and the Mexican government included: offer of reinstatement to two unlawfully dismissed workers; company issuance of written neutrality statement committing to respect freedom of association and collective bargaining rights; personnel guidelines to comply with neutrality statement and worker rights at the plant; zero-tolerance policy for violations of neutrality statement and guidelines; training for all employees currently working, on freedom of association and collective bargaining rights and responsibilities. Links: USTR press release; Ministry of Economy/Ministry of Labor press release; USTR letter to Treasury.
October 23: USTR and US Department of Labor announced US request to Mexico to review whether workers in San Luis Potosí plant of Asiaway Automotive Components are being denied the right to freedom of association and collective bargaining. This was the first RRM request concerning a plant owned by a PRC investor. Request followed September 20 petition submitted by Mexican union La Liga Sindical Obrera Mexicana (LSOM) and the International Lawyers Assisting Workers Network (ILAW Network); petition alleged that Asiaway dismissed a worker in retaliation for undertaking union organizing activity. Links: text of US request; USTR letter to Treasury Department requesting suspension of customs settlement for imports of goods made in Asiaway plant; USTR press release; Department of Labor press release.
December 8: Ministry of Economy and Ministry of Labor and Social Welfare (STPS) announced successful conclusion of investigation of Asiaway Automotive Components. In the investigation, it was determined that certain actions on the part of Asiaway may have constituted a denial of right to freedom of association and collective bargaining, but during the investigation period, Asiaway carried out following remedial actions, in coordination with STPS:
Published and disseminated letter of neutrality and guidelines for its staff;
Provided training to all workers at the plant on neutrality charter and conduct guidelines;
STPS facilitated training for all workers at the plant on rights to freedom of association and collective bargaining;
Asiaway reinstated a worker who had been unjustifiably dismissed.
Accordingly Mexico concluded that the facts complained of were resolved within the USMCA period of 45 calendar days for internal review; governments of Mexico and US will examine closing of this case.
February 16 and 20, 2024: US and Mexican governments announced successful closing of case involving Asiaway Automotive Components. Links: press releases by USTR and Ministry of Economy/Ministry of Labor and Social Welfare. Letter from USTR to US Treasury requesting resumption of liquidation of imports from the Asiaway plant.
September 25: USTR requests Mexico to review whether workers at Teklas Automotive plant in Aguascalientes are being denied right to freedom of association and collective bargaining. August 24, 2023 petition by La Liga Sindical Obrera Mexicana (LSOM) and the International Lawyers Attending Worker Network (ILAW Network) alleged that Teklas threatened and dismissed workers in retaliation for union organizing activity. Links: USTR press release; USTR request; USTR request to Treasury Department to suspend liquidation of entries of goods from Teklas Aguascalientes plant. Teklas is a Turkish-owned company that designs, develops and manufactures fluid systems for automotive heating and cooling lines.
October 5: Mexican government agrees to this review; government has 35 days from October 5 to determine whether such denials of rights have taken place.
December 8: Ministry of Economy issues joint communiqué that after concluding its investigation into alleged denial of freedom of association and collective bargaining rights by Teklas Automotive Mexico, and sharing the results with USTR on November 9, both sides have made progress on agreeing on a plan of remediation.
January 30, 2024: Liga Sindical Obrera Mexicana (LSOM) reported to have won union representation election at Teklas Automotive Mexico; management committed to negotiate a new contract with LSOM.
August 30, 2023: USTR announced request for Mexican government to review whether pilots at Aerotransportes Mas de Carga (Mas Air), a Mexico City-based cargo transportation airline, are being denied the right to freedom of association and collective bargaining. This was the first USMCA Rapid Response Mechanism request concerning a service business. Request responds to July 21 petition from Mexican pilot union Asociación Sindical de Pilotos Aviadores de México (ASPA). Links: USTR press release; US request; Mas Air website; El Universal on the request; El Universal on ASPA reaction that investigation sets a precedent for the airline industry. USTR did not request Treasury to suspend customs clearance of any imports.
September 8: Ministry of Economy announced that Mexican government has accepted US request; Ministry of Labour and Social Welfare (STPS) has 45 days to conduct internal investigation to determine whether denial of rights has occurred; Mexico reiterates its commitment to effectively apply labor laws and the USMCA labor chapter, thereby guaranteeing compliance with, and protection of, collective rights of Mexican workers.
October 18: Mexican government announced that STPS and Ministry of Economy successfully concluded review of Mas Air. During initial examination of US request, labor authorities determined that there might be violation of Mexican labor law and denial of labor rights, but during further review, Mas Air, cooperating with STPS, carried out remediation actions including e.g. publishing and distributing a letter of neutrality and guidelines of conduct; training pilots on their rights of freedom of association and collective bargaining; and reinstatement of a pilot who had been dismissed. Links: Mexican government announcement; report by El Universal.
For submissions in this case, see Trade Agreements Secretariat (TAS) online Public Reading Room (requires free registration and login); USTR webpage on RRM (see bottom of the page); Mexican Ministry of Economy list of documents.
Background: The United Steelworkers (USW) first raised issues concerning labor rights and worker safety of Mexican mineworkers in a 2006 submission under the North American Agreement on Labor Cooperation, focused on the Pasta de Conchos mine in Coahuila.
The San Martín Mine produces lead, zinc and copper, near Sombrerete in Zacatecas. It is owned and operated by Grupo México - Mexico’s fourth largest company, world’s third largest copper producer, and parent of US copper producer Asarco. Grupo México’s majority owner is Germán Larrea Mota Velasco.
The labor dispute at the San Martín Mine began with a strike initiated in 2007 by the Mexican union Los Mineros (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana). In 2018, a group of the striking workers formed a coalition under the Mexican Federal Labor Law as of 2018 (Los Trabajadores Coaligados), and a majority voted to end the strike. Los Mineros then challenged the vote in the Mexican courts. On August 22, 2018, Mexico’s Federal Mediation and Arbitration Board authorized restart of operations at the San Martín Mine.
In 2018, Mexican negotiators agreed to new standards for Mexico’s labor regime as part of USMCA, and in May 2019, Mexico implemented changes to its labor laws accordingly.
Los Mineros continued to contest the 2018 authorization of restart of operations at the Mine. On August 5, 2022 Los Mineros was reported to have filed a Rapid Response Mechanism complaint with the US related to the strike at the San Martín mine. The head of Los Mineros is Napoleón Gómez Urrutia, a Senator affiliated with the Morena party of Mexican President Lopez Obrador.
Los Mineros, Los Trabajadores Coaligados, the San Martín Mine, and the US and Mexican governments contest the significance of various judicial decisions concerning the ownership of the collective bargaining agreement with the Mine, lawfulness of the strike, the imputability of the strike, and the authorization to restart operations at the Mine.
Timeline for dispute settlement proceedings: The need to translate submissions has lengthened the timetable.
September 28, 2023: Mexico submitted a initial written submission setting out the results of the investigation and arguments that the panel lacked jurisdiction: nominal date September 28, docketed with English language translation November 16.
October 31: US reply submission (posted on USTR website but not publicly available on the TAS site).
Mexico Rebuttal Submission, and submissions by Los Mineros, the San Martín Mine and Los Trabajadores Coaligados. The US Rebuttal Submission refers to these submissions but none of them is publicly available in the TAS Public Reading Room.
December 13: US rebuttal submission (nominal date December 13; docketed with Spanish language translation January 11, 2024)
February 28-29, 2024 November 23: Hearing (originally scheduled for November 23, 2023) postponed to February 28-29, 2024)
Four days later: Panel written questions (based on schedule on TAS site)
Seven days later: Responses to written questions
Seven days later: Comments to written questions
May 9, 2024: Initial panel report (according to TAS schedule; could be postponed, triggering postponement of later steps)
May 24, 2024: Party comments on initial panel report
June 24, 2024: Final panel report transmitted to Parties
July 9, 2024: Final panel report released to public.
June 16, 2023: USTR announced US had asked Mexico to review whether workers at San Martín Mine were being denied rights to freedom of association and collective bargaining. USTR press release referred to a May 15, 2023 RRM petition by the AFL-CIO, USW and Los Mineros.
According to the USTR press release, the petition alleged that Grupo México had resumed mine operations in spite of a strike that has continued since 2007, and that Grupo México engaged in collective bargaining with a worker coalition (Los Trabajadores Coaligados) even though Los Mineros holds the representation right for that mine.
Links: USTR press release; US request to Mexican government; USTR request to Treasury Department to suspend settlement of customs accounts for imports from San Martin mine. United Steel Workers press release praising US request. El Economista on the union representation issue. La Jornada Zacatecas on the mining strike. Los Angeles Times on Los Mineros leader.
June 21: Grupo México asserted that it lawfully resumed operations at the mine in 2018 after a majority of workers voted to go back to work and withdrew support from the striking union. Grupo México also asserted politicization of this dispute by the leader of Los Mineros, connected to a past dispute concerning the Cananea mine. Links: Articles on Grupo Mexico rebuttals (Reuters, El Economista, El Universal, Wall Street Journal).
August 1: Mexican government announced that it had transmitted to US the results of its investigation of the Rapid Response Mechanism petition regarding Grupo México, and that it had determined that: (1) the US request for review relates solely to the mine in Sombrerete, Zacatecas; (2) this matter concerns a strike that began in 2007; (3) this strike, and the events complained of in the petition, took place before the entry into force of USMCA, and therefore (4) this conflict is outside the scope of the Rapid Response Mechanism; also, (5) there is no evidence that this mine exports to the US and is a Covered Facility under the RRM. Links: Mexican government press release; reports by Reuters, El Economista.
August 7: Mexican president Andres Manuel Lopez Obrador admitted that there are pending labor issues in Mexico’s mining sector but stated that Mexico will not use dispute settlement to avoid responsibility.
August 22: USTR announced that the US had escalated its request for review of denial of labor rights at the San Martín mine in Sombrerete, Zacatecas, by requesting a Rapid Response Labor Mechanism panel under Chapter 31-A of USMCA. This was the first time that any party had requested such a panel review.
US panel request asserted that the mine is a “Covered Facility” under USMCA “[d]ue to the significant bilateral trade between Mexico and the United States in copper and other minerals.” Panel request asserted denial of rights through noncompliance with four named sections of Mexico’s Federal Labor Law. August 22 USTR press release noted that suspension of customs settlement remains in place for US imports from the San Martín mine.
Mexican Ministry of Economy responded on August 22 that it had received the panel request, that it will defend Mexico’s decision in cooperation with Mexican labor authorities, asserting (i) the legal principle of non-retroactivity of treaties, and (ii) that the dispute had been handled by the competent domestic bodies therefore intrusion by a parallel USMCA process is unacceptable.
Links: USTR press release; US panel request; Ministry of Economy statement; UNAM (Universidad Autónoma Nacional de México) Center on Environmental Geography website on the San Martín mine.
Press: AP (on RRM generally and in this case); Reuters; Bloomberg/Mining.com (on Grupo México and its owner); La Jornada; El Universal (on statement by Grupo México denying any violation and criticizing Los Mineros and its leader Napoleón Gómez Urrutia). Wall Street Journal (criticizes RRM case on San Martín Mine). Los Angeles Times (on Napoleón Gómez Urrutia)
August 30: Panel was constituted for dispute under USMCA Annex 31-A concerning the San Martín mine initiated August 22. Panelists: Gary Cwitco (non-national/Canada); Lorenzo de Jesús Roel Hernández (Mexico); Kevin P. Kolben (US).
September 4: In September 1 letter to the Panel (date-stamped September 4), Mexican government Director-General for International Economic Law Alan Bonfiglio Ríos stated:
Pursuant to USMCA Article 31-A.6, the Panel has five business days after it is constituted to confirm that the petition: (a) identifies a Covered Facility, (b) identifies the respondent Party’s laws relevant to the Denial of Rights, and (c) states the basis for the complainant Party’s good faith belief that there is a Denial of Rights.
On August 30, the USMCA Secretariat communicated to the Parties that the Panel had been constituted on that date.
A confirmation by the Panel pursuant to Article 31-A.6 is solely a prima facie analysis that does not prejudge the merits of the dispute or any jurisdictional objections that the defending Party may assert.
Mexico reiterates that the San Martín Mine cannot be considered to be as a Covered Facility, that the applicable law is outside the scope of the Rapid Response Mechanism, and that there is no Denial of Rights; Mexico reserves its rights to address these and other aspects in greater depth at the appropriate procedural moment.
September 6: In decision (date-stamped by Secretariat September 7) Panel decided, based on documentation available to it as of September 5, that the petition of the United States met the prima facie requirements of Article 31-A.6 and the petition was thereby confirmed.
September 7: By letter to Alan Bonfiglio Ríos, the Panel:
Pursuant to USMCA Article 31-1.7, made a request to Mexico for verification; and requested “a document establishing the results of the respondent Party’s investigation and conclusions and any efforts it took as a result of the Request for Review and Remediation under Article 31-A.4.”
Advised that after a Zoom meeting with the Parties scheduled for September 12, the Panel would request additional information concerning positions of Mexico on the questions the Panel is charged with resolving; also that the Panel wished to use this forum to discuss timing of the submission of documents, the mechanisms for the hearings and schedules as well as the form the hearings will take and the possibility of an on-site verification.
September 14: Panel memorandum set out timetable for the proceeding, based on Article 9.5 of Annex III Rules of Procedure for USMCA Chapter 31, and reflecting suggestions at meeting with the parties on September 12.
(1) Within 15 business days after Sept. 7: Mexico to submit “a document establishing the results of the respondent Party’s investigation and conclusions and any efforts it took as a result of the Request for Review and Remediation under article 31-A.4.”
(2) Within 7 business days after receipt of translated document by Mexico referred to under (1) above: US submits reply.
(3) One day after translation of US reply is available to the parties: Secretariat to ask non-government entities directly involved in the dispute (e.g. Mina San Martín-Grupo México; Sindicato Minero (Los Mineros); Trabajadores Coaligados (the union currently recognized at the San Martín Mine)) to submit written briefs on the issues before the panel, within 5 days of Secretariat request.
(4) Five business days after translations of non-governmental entity submissions are available: Both Parties must submit reply to (a) other Party’s original submission and (b) any submission by non-governmental entities.
(5) Within 5 business days after translation of final submissions of the Parties: Panel will schedule an in-person verification hearing in Mexico City. Panel will allocate 2 days for oral arguments from the Parties and questions from the panel. Hearing will be open to the public.
September 18: Mexican government letter to Panel consented to the Panel’s September 7 request for verification; also, asked the Panel to indicate to the Parties: the form for its verification, i.e. whether it will request information and documents from the Parties or from the non-government entities directly related to the dispute; and whether it will conduct an on-the-spot verification at the San Martín Mine. Letter noted reference in September 14 Panel letter to an “in-person verification hearing in Mexico City”, and noted need to make advance arrangements for any on-the-spot visit to the mine. Mexico proposed that any such visit take place after the Parties’ written submissions.
October 31: USTR reply submission argued that (i) Grupo México is currently denying labor rights by operating the mine during a strike and bargaining with an unauthorized group of workers; (ii) as a matter of Mexican law, the Mexican court system has ruled that Los Mineros has the right to represent the workers at the Mine, not the Trabajadores Coaligados; (iii) the Mine is a Covered Facility subject to the RRM because the copper, lead and zinc ores and concentrates it produces are (a) exported to the US and (b) sold in Mexico where they compete with US exports into Mexico.
A subsequent submission by the Mine argued that it cannot be considered a Covered Facility because it captively consumes all the copper ore and concentrates it produces, and because it does not export minerals from this mine into the US. The Trabajadores Coaligados also argued that it had the right to represent the workers at the Mine. Neither of these submissions is available in the online TAS Public Reading Room for this dispute. The Mexican government also made another submission which is not publicly available.
December 13: USTR rebuttal submission again argued that a facility is a Covered Facility subject to the RRM if it (i) produces a good or supplies a service traded between the Parties; or (ii) produces a good or supplies a service that competes in the territory of a Party with a good or a service of the other Party. Rebuttal submission argued that the Mine was exporting to the US and even if not, its captive consumption competes with US exports. Rebuttal submission also argued (based on Mexican law) that the Mine is denying labor rights by operating during a strike.
January 12, 2024: US Chamber of Commerce submitted an amicus brief to the panel concerning issues in this dispute. The Chamber submission argued that because the facts upon which the US relies to support its case occurred before USMCA entered into force, there is no denial of rights and pursuit of the case disregards the rule of law. The submission further criticized denial of due process by (i) denial of opportunity for NGOs or other interested parties to make submissions; (ii) failure to provide the RRM petition (even in redacted form) to the Mexican government or the Mine; (iii) conducting a proceeding premised on facts that took place before USMCA entered into force.
February 22: Letter to Mexican Section of USMCA Secretariat from counsel for San Martín Mine stated that the company has never been informed of the complete allegations against it, the panel has not responded to the company’s request to participate in the hearing, and the panel gave it no notice of the hearing dates. Inside US Trade reported on February 23 that the company was told informally that it will not be allowed to participate in the hearing and its legal counsel cannot attend the verification visit at the mine scheduled for February 26.
February 26: Verification visit scheduled at the San Martín Mine.
February 28-29: Hearing in this dispute scheduled in Mexico City, also to be livestreamed.
May 12, 2023: Workers of apparel producer Industrias del Interior (INISA 2000) in Aguascalientes are reported to have submitted a Rapid Response Mechanism petition alleging that the company has refused to negotiate an 8% wage increase and has fired workers advocating unionization. Controversy alleged to have started when INISA workers tried to switch their affiliation from the CTM to the Frente Auténtico del Trabajo (FAT, Authentic Labor Front).
June 12: USTR announces US has asked Mexico to review whether workers at an Industrias del Interior (INISA) denim garment plant in Aguascalientes are being denied the right to freedom of association and collective bargaining. This is the first time the USMCA Rapid Response Mechanism has been invoked outside the automotive sector. Request follows May 12 petition by Frente Auténtico del Trabajo (FAT) and a union representing workers at this plant, Sindicato de Industrias del Interior. Petition alleged that INISA is coercing workers to accept company’s proposed collective bargaining agreement revisions and is intervening in the union’s internal affairs; petition also alleged INISA is failing to bargain in good faith with union.
Links: USTR press release; US request to Mexican government; USTR request to Treasury Department to suspend settlement of customs accounts for imports from INISA plant.
August 9, 2023: Governments of Mexico and the US announce agreement on a remediation plan for issues raised in the Rapid Response Mechanism petition regarding Industrias del Interior, SA (INISA) denim plant in Rincón de Romos, Aguascalientes. Links: Mexican government press release; El Universal; AP; Sourcing Journal.
May 31, 2023: USTR announces US has yet again invoked USMCA Rapid Response Mechanism and requests that Mexican government review whether workers at an Irapuato, Guanajuato plant of the auto parts producer Draxton are being denied the rights to freedom of association and collective bargaining. USTR requests Treasury to suspend liquidation of inbound customs entries. This request was self-initiated by the US government.
Links: USTR press release; USTR request to Mexican government; USTR request to Treasury Department for suspension of liquidation (suspension of settlement of customs accounts) for imports of goods produced in that factory; Reuters.
July 31: Governments of Mexico and the US announce agreement on a remediation plan for issues raised in the Rapid Response Mechanism petition regarding Draxton automotive plant in Irapuato, Guanajuato. Links: Mexican government press release; USTR press release; Labor Department remediation plan (English) (Spanish).
August 7, 2023: USTR announces its request for Mexican government to review labor rights concerns at Grupo Yazaki Planta León automotive wiring harness factory in Guanajuato, and requests Treasury to suspend settlement of customs accounts for US imports from that factory. Links: USTR request; USTR press release; El Universal.
August 18: Mexican Ministry of Economy announces that it has notified USTR that Mexico will not review an alleged denial of labor rights at auto parts company Grupo Yazaki in Guanajuato. As Mexico had informed USTR before its review request, Mexican labor authorities had conducted a verification, had resolved instances of nonconformity and had carried out a 2023 consultation on legitimization of the collective bargaining agreement at the Guanajuato plant. On this basis, labor authorities had determined that no substantial evidence exists of employer interference or denial by Yazaki of rights to freedom of association and collective bargaining. Inside US Trade reports August 18 that USTR is reviewing Mexico’s response.
Link: Mexican CFCRL online master list of collective bargaining agreements that went through the legitimation process provided in Mexico’s new labor law. List includes labor contract between Grupo Yazaki and Miguel Lopez Trujillo (CTM-affiliated) union.
Press: El Economista; AP (reporting that the union that brought the RRM petition lost an election in March 2023 to the CTM union).
October 4: Mexican government announces that Mexico and US have agreed to conclude review of Grupo Yazaki with no invocation of a RRM dispute resolution panel. On August 18, Ministry of Labor had determined there was no evidence of denial of labor rights by Grupo Yazaki. Grupo Yazaki proactively (1) published neutrality statement on its website and at its Mexican facilities, (2) had Labor Ministry training for workers at its Planta León factory; ILO will train union personnel; (3) Mexican government will inspect León plant and post statement on labor rights during any union vote. USTR announces successful resolution of RRM labor issue at Grupo Yazaki Planta León factory, states that the situation brought to USTR’s attention via petition has been resolved and the US agrees that there is no ongoing denial of rights. USTR directs Treasury to resume customs liquidation for entries of goods from Planta León factory. Links: Reuters report.
April 20, 2023: La Liga Sindical Obrera Mexicana (LSOM) filed petition with US Department of Labor alleging that a plant of Goodyear SLP, S. de R.L. de C.V. in San Luis Potosí has refused to apply a sectoral collective bargaining agreement (contrato ley) covering the rubber industry, and instead has signed a company-specific collective bargaining agreement with lower benefits, with the Miguel Trujillo Lopez union affiliated with the Confederation of Mexican Workers (CTM).
The 2023 petition followed 2019 criticism by US Ways & Means Democratic Party members about this plant, and 2018 wildcat strike at the plant.
April 23: Mexico’s Federal Center for Conciliation and Labor Registration (CFCRL) suspended a vote by Goodyear workers on the collective bargaining agreement with the Miguel Lopez Trujillo union. CFCRL and Ministry of Labor denounced irregularities in the vote, including theft of the ballot box used in the first day of voting.
May 8: In a vote verified by the CFCRL and observed by the ILO, 83% of workers voting at the Goodyear plant rejected the agreement, terminating the agreement with Miguel Lopez Trujillo union as of May 31, 2023.
May 22: USTR announced that US has again invoked the USMCA Rapid Response Mechanism and has asked Mexico to review whether workers at a facility operated by Goodyear SLP, S. de R.L. de C.V. in San Luis Potosí are being denied the rights to freedom of association and collective bargaining. Mexico has 10 days (until June 1) to decide whether to conduct a review, and if it agrees, 45 days (until July 6) to conduct the review. In the meantime, US customs clearance of imports from the Goodyear plant is suspended.
Links: US request for review; USTR press release; US Labor Department press release; USTR request for suspension of liquidation of imports from the Goodyear plant; report from FreightWaves; also, report on complaints about this Goodyear plant in 2019 by US Ways & Means Democratic Party members.
June 1: Mexican government announced it has agreed to review potential labor rights violations at Goodyear plant pursuant to May 22 US request. Link: Ministry of Economy announcement.
July 19: Governments of Mexico and the US announced agreement on a remediation plan for labor relations at the Goodyear tire manufacturing plant in San Luis Potosí. Links: Mexican government press release; press release by United Steelworkers welcoming resolution of this case and calling on all tire industry employers in Mexico to respect workers’ rights; report by El Universal.
August 9: El Universal reported that as part of the remediation plan at Goodyear México agreed in July, a vote on August 7-8 has replaced the former union with the Sindicato Independiente de Trabajadores de Goodyear México. Also, Goodyear must apply the Rubber Industry Contract (Contrato Ley de la Industria Hulera) as from January 19, 2024, resulting in a 30% increase in wages.
October 17: El Economista reported that following up on the remediation plan, workers at the Goodyear plant will be paid compensation for past failure to apply the Rubber Industry Contract.
February 5, 2024: US Department of Labor and USTR announced successful conclusion of the Rapid Response Mechanism remediation plan at Goodyear rubber tire plant in San Luis Potosí after 2023 Rapid Response Mechanism review. Over 1300 workers have received $4 million in back pay, reclassification of jobs resulting in wage increases, and improved benefits. Press release quoted United Steelworkers Union VP praising the result as closing the wage gap between USW Goodyear workers in the US and their Mexican counterparts. USTR requested that Treasury Department resume liquidation of entries from this plant. Links: Full course of remediation; Spanish language translation of full course of remediation; USTR letter to Treasury Department.
February 2, 2023: Sindicato Nacional de Trabajadores de la Transformación, Construcción, Automotriz, Agropecuaria, Plásticos y de la Industria en General, del Comercio y Servicios, Similares, Anexos y Conexos del Estado de Querétaro files RRM petition regarding auto parts plant of Unique Fabricating de México in Santiago de Querétaro, State of Querétaro. Petition alleges that workers at this plant are being denied rights of freedom of association and collective bargaining.
March 6, 2023: USTR submits request to Mexico to review whether workers at Unique Fabricating plant in Santiago de Querétaro are being denied rights of free association and collective bargaining. Links: USTR press release; US Labor Department press release; USTR request to Mexico; USTR request to Treasury Department to suspend liquidation of entries from Unique Fabricating plant; El Economista on the background.
March 17: Mexico’s Labor Ministry and Secretaría de Economía issue joint communiqué stating that they will review US March 6 request. Deadline for response: 45 days. Links: Joint communiqué; report in El Economista
April 24: Labor Ministry and Secretaría de Economía announce successful conclusion of review; during review, workers at the Querétaro facility voted on their collective bargaining agreement and chose the union to represent them; also, intervention of the Ministry, Centro Federal de Conciliación y Registro Laboral and Querétaro labor court, including monitoring of voting process, guaranteed that these events took place in impartial conditions. Unique Fabricating issued a union neutrality statement and agreed with the new union to provide the new and existing unions with equal access to the facility, take steps to prevent potential freedom of association violations, and provide the new union with dues from its affiliates. USTR announces that as a result of these actions, the US agrees that there is no ongoing denial of rights; USTR Tai has directed Treasury Department to resume liquidation of entries of goods from Unique Fabricating plant. Links: Labor Ministry/Economía joint communiqué; US Labor Department press release; USTR press release; El Universal.
August 2, 2022: Mexican labor union SNITIS and US NGO Rethink Trade announce filing of Rapid Response Mechanism petition concerning union legitimation vote at BBB Manufacturing, a firm that refurbishes auto parts in Mexican border city of Reynosa. Links: Reuters. El Economista. Rethink Trade
September 1: US rejects request for investigation of alleged worker rights abuses by BBB Manufacturing. According to USTR, SNITIS petition did not meet the USMCA standard of "sufficient, credible evidence of a denial of rights" necessary to trigger USMCA Rapid Response Mechanism. Links: Reuters
June 19, 2022: El Economista reports that members of union La Liga de Trabajadores Mexicanos have filed a RRM petition alleging that auto parts company Manufacturas VU (VU Manufacturing) invited the Confederation of Mexican Workers (CTM) into its Piedras Negras auto parts plant in Coahuila, to impose a pro-company union without worker consent.
July 21: US requests review by Mexico of alleged denial of rights at the Piedras Negras plant of Manufacturas VU, in response to request by union La Liga Sindical Obrera Mexicana (LSOM) and the Comité Fronterizo de Obreras (CFO, a worker advocacy group). This is the 5th US request under the USMCA Rapid Response Mechanism. Links: USTR press release; US Department of Labor press release; US request for review; USTR request to suspend liquidation of entries of goods imported from Piedras Negras plant. Ministry of Economy press release.
July 29: Mexico’s Ministry of Economy announces it has agreed to investigate alleged denial of labor rights at Manufacturas VU plant in Piedras Negras (coverage in El Economista). August 31: Reportedly, National Electoral Institute (INE) and ILO will observe the vote (El Economista).
September 14: US and Mexico announce successful resolution of Rapid Response Mechanism petition related to Manufacturas VU plant. In August 31 union representation election supervised by Centro Federal de Conciliación y Registro Laboral (CFCRL, Federal Center for Conciliation and Labor Registration), and observed by INE and ILO, VU workers voted in favor of representation by LSOM. Before the vote, Mexican government educated workers on voting process and implications and provided training to VU personnel; also facilitated written commitment from VU to remain neutral. CFCRL did site visits before the vote. On September 9, CFCRL issued LSOM a certificate of representation, which authorized LSOM to bargain collectively for VU workers. Mexican government has agreed to monitor and follow up as appropriate. USTR directed Treasury Department to resume liquidation of entries of goods from that Manufacturas VU facility. Links: Reuters
January 4, 2023: LSOM and CFO announce that workers at Manufacturas VU plant in Piedras Negras have submitted a renewed USMCA Rapid Response Mechanism petition to the US Labor Department concerning new denial of rights at the plant. Petition reportedly alleges that after the outcome of August 31, 2022 representation election in favor of LSOM, the company has refused to bargain in good faith and denied plant access to LSOM. Links: El Economista. January 10: 5 Members of US Congress write in support of petition.
January 30, 2023: USTR invokes USMCA Rapid Response Mechanism for second time with respect to Manufacturas VU plant in Piedras Negras. Links: USTR press release; USTR request to Treasury Department to again suspend liquidation of entries from Piedras Negras plant; El Economista.
March 16: Mexico’s Secretaría de Economía and Labor Ministry issue joint communiqué concerning their examination of labor situation at Manufacturas VU Piedras Negras plant; states that serious irregularities exist and the company has acted to impede freedom of association and collective bargaining. Communiqué announces 10-day consultation with US government on a remediation plan.
March 31: USTR and Mexico announce agreement on course of remediation to address most recent Rapid Response Mechanism petition against Manufacturas Vu plant in Piedras Negras. Links: USTR press release; Secretaría de Economía press release; remediation agreement (original in English); unofficial Spanish language translation of remediation agreement.
July 19: El Universal reports warning by LSOM representative that: Manufacturas VU may close its plant rather than comply with remediation plan agreed under USMCA Rapid Response Mechanism; also, that company has removed machinery from the plant, is operating with 10% of former employees, and has discharged all but 50 of the 400 who were employed at the time of the vote on union representation.
October 10: US Department of Labor Undersecretary Thea Lee and USTR Katherine Tai announce that Manufacturas VU (VU Manufacturing) has decided to close its plant in Piedras Negras, Mexico. In July 2023, LSOM union had warned that the Piedras Negras plant had begun layoffs of workers and was moving its machinery. Manufacturas VU was the target of two worker complaints, in 2022 and 2023, reviewed under USMCA Rapid Response Mechanism. From Lee statement: ““Recognizing the positive impact of the Rapid Response Mechanism for workers in just a few years, we also knew employers would not choose compliance in every instance. We note with disappointment VU’s decision to close its facility without adhering to the agreed course of remediation.” Remediation plan expired on September 30, 2023.
June 6, 2022: USTR and US Labor Department announce a fourth request to the Mexican government to review whether workers at the Frontera, Coahuila plant of Teksid Hierro de Mexico, S.A. de C.V. are being denied rights of free association and collective bargaining. This request responds to a May 5 petition from the UAW, the AFL-CIO, and a Mexican union, Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana (Los Mineros). USTR requested that US Customs suspend liquidation of entries into the US of goods from the Teksid Hierro plant. Ministry of Economy notes receipt of request. Links: El Economista. Reuters. Ward’s Auto News
August 8: Reuters reports that Teksid reached agreement with Lost Mineros on July 11 and that the RRM complaint will close without going to a dispute panel; USTR told Reuters it is negotiating remediation plan with government of Mexico.
August 16: US and Mexico announce resolution of RRM petition concerning Teksid Hierro de México, SA de CV facility in Frontera, Mexico, and announce agreed remediation plan. USTR sends letter directing Treasury to resume liquidation of entries of goods from the Teksid Hierro plant. Remediation plan recognizes July 11 agreement between Los Mineros and Teksid Hierro, which was facilitated by Mexican government in light of August 2 Course of Remediation. US announcement states Teksid will give Los Mineros access to the plant and dedicated office in the plant; will pay Los Mineros withheld union dues; will reinstate with back pay 36 workers terminated for protest against company; will issue neutrality statement. (Coverage in El Economista).
April 18, 2022: Sindicato Nacional Independiente de Trabajadores de Industrias y de Servicios Movimiento 20/32 (SNITIS) and US NGO Rethink Trade announce filing of a USMCA Rapid Response Mechanism petition with US Labor Department, concerning conflict at Reynosa, Mexico plant of Panasonic Automotive Systems de Mexico S.A. de C.V., which makes audio/video systems for autos in USMCA market. Press: El Economista, Reuters.
April 19: Petition by SNITIS to US Labor Department urges immediate suspension of liquidation of tariffs on US imports from this Panasonic plant: El Economista.
April 22: After two-day election, Mexican government announces that workers at the Panasonic plant voted 75%-25% for SNITIS over the CTM-affiliated union, Sindicato Industrial Autónomo de Operarios en General de Maquiladoras de la República Mexicana (SIAMARM). Press: El Economista, Reuters.
May 18: USTR announces a new request to the Mexican government to review whether workers at the Reynosa plant of Panasonic Automotive Systems de Mexico are being denied the rights of free association and collective bargaining. This request responds to the April 18 petition by the independent union SNITIS and the US NGO Rethink Trade. On April 22, the Mexican government announced that workers at the Reynosa plant had voted 75%-25% for SNITIS in a union representation election. USTR requested that Customs suspend liquidation of entries into the US of goods from the Reynosa plant. Links: Rethink Trade press release; El Economista; Rep. Pascrell statement. Update June 8: according to El Economista, SNITIS has announced it will strike unless agreement on a collective bargaining agreement is reached by June 9.
July 14: USTR and US Department of Labor announce successful resolution of matter, stating that the government of Mexico facilitated resolution including Panasonic actions to remediate workers’ claims, including recognition of SNITIS as workers’ sole bargaining representative and negotiation of new collective bargaining agreement with significantly increased wages; reinstatement with full back pay of workers allegedly terminated for participating in union activity; repayment of wage deductions for those who participated in a work stoppage at the facility. USTR requests Treasury Department to resume liquidation of entries from Reynosa plant.
See also US Labor Department webpage on GM/Silao proceeding.
May 12, 2021: USTR announces first use of USMCA Rapid Response Mechanism, with transmission of request by US to Mexico to review whether workers at a General Motors (GM) facility in Silao, Guanajuato are being denied the right of free association and collective bargaining. USTR and US Department of Labor received information indicating violations of worker rights in connection with recent vote organized by existing union to approve a collective bargaining agreement. USTR Tai directs Treasury Department to suspend liquidation (suspend final settlement of customs accounts) for entries of goods from GM’s Silao facility. As background: Silao plant is reportedly key to GM’s North American light truck strategy and produced 339,000 Chevrolet Silverado and GMC Sierra units in 2019, over 1/3 of GM total light truck production.
June 28, 2021: Mexico sends a letter to the US regarding the USMCA Rapid Response Mechanism case on the GM plant in Silao. According to Reuters, and (in more detail) El Economista here and here, the Labor Ministry told the union at the plant that it must hold another vote by August 20 on whether to accept the current contract, and if not it will lose that contract. The objective of this remediation is to ensure that the majority of workers at the GM Silao plant will be able to vote freely and without intimidation. The US and Mexico will have 10 days to agree on the remediation plan.
July 8, 2021: US and Mexico announce settlement of USMCA Rapid Response Mechanism issues regarding GM plant in Silao, through agreement with Mexico for a comprehensive remediation plan to address denial of worker rights. USTR Tai releases statement that the settlement shows how USMCA can help Mexican workers and help US workers by preventing a race to the bottom. According to USTR’s fact sheet, the remediation plan provided:
A new vote would be held by August 20; if not, the existing collective bargaining agreement (CBA) would be terminated and workers will retain their rights under the CBA.
The Labor Ministry would oversee the vote and see that voting is secure.
Federal inspectors from STPS (present at the worksite from the week of July 8 through August 20) would ensure that the vote is free from coercion; they will conduct random interviews of workers.
The ILO would send international observers. Mexico’s National Electoral Institute would send domestic observers.
Mexico would investigate and sanction (as appropriate) anyone responsible for the conduct that led to the suspension of the April vote.
STPS would disseminate to workers information on their rights regarding the vote, and would monitor an email address and hotline number for complaints about the voting process.
STPS and the Federal Center for Labor Conciliation and Registration (Center) would update the Center’s protocol for overseeing future legitimation votes in light of lessons learned.
GM would issue a statement of neutrality and zero-tolerance policy for retaliation.
USTR would monitor implementation closely, and if after August 20 the US determines the Denial of Rights has not been remediated, the US may decide to impose further remedies.
July 30, 2021: International Labour Organization announces that the governments of Mexico and the US have invited the ILO to participate as the international observer during a vote to confirm the collective bargaining agreement (CBA) at the GM plant in Silao on 17-18 August:
This vote is part of the agreed remediation plan announced on 8 July. It addresses a request by the US to review whether workers were denied the right to freedom of association and collective bargaining and relates to concerns of irregularities preceding, during and surrounding an earlier vote at the plant.
The objective of the vote is to determine whether the workers at the GM plant confirm or reject the existing Miguel Trujillo López Trade Union CBA. ILO officials will be at the factory both before and during the vote to observe conditions and actions that may either support or hinder a democratic environment free from harassment and intimidation, and that workers are able to vote in a personal, free and secret manner. The ILO officials will also observe workers access to accurate information on the CBA.
The ILO will follow its practices and procedures in collecting information on this process and will share its observations to the GoM and USG. The GoM will announce the results of the vote within a period of time yet to be determined. The ILO will publish a statement at the end of the process.
August 19, 2021: Result of vote at GM Silao plant announced: 55% of workers at Silao GM plant voted to reject collective bargaining agreement with Miguel Trujillo Lopez union, part of Confederation of Mexican Workers (CTM). USTR issues statement congratulating Labor Ministry and stating USTR will continue to work with Mexican counterparts to protect the rights of North American workers. El Economista newspaper article discusses details and comments on unprecedented nature of the process; see El Economista for continuing coverage of Silao union votes and implications for labor relations in Mexico.
September 22: USTR Tai and Labor Secretary Walsh announce, and Ministry of Economy announces, successful conclusion of remediation process at Silao plant. USTR Tai directs Treasury to resume liquidation of entries of goods from Silao plant (which had been suspended on May 12).
February 3, 2022: Mexican government Centro Federal Laboral announces that new independent union (Sindicato Independiente Nacional de Trabajadores y Trabajadoras de la Industria Automotriz, SINTTIA) won 76.5% of votes cast by workers on February 1-2 at the Silao GM light truck plant; GM declares it will negotiate a new collective bargaining agreement with SINTTIA. (More from El Economista; statements by USTR, US Labor Department, US Embassy Mexico).
May 11: SINTTIA independent union at GM’s Silao plant in Guanajuato announces that it has reached a deal with GM for a new contract, with raises and benefits above the rate of inflation. Press reports: Reuters; Expansión.