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.