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.