RAPID RESPONSE MECHANISM, USMCA Annex 31-A

US-MEXICO and RAPID RESPONSE MECHANISM

GENERAL

  • US Interim Procedural Guidelines for submission of US petitions under Rapid Response Mechanism (Spanish language translation)

  • June 22, 2023 notice with final revised procedural guidelines for submissions by the public of information on potential failures by Canada or Mexico to implement their USMCA labor obligations.

CASES

(1) Tridonex

  • May 10, 2021: AFL-CIO, Service Employees International Union, Public Citizen Global Trade Watch, and Sindicato National Independiente de Trabajadores de Industrias y Servicios “Movimiento 20/32” announce filing of first complaint under USMCA Rapid Response Mechanism Interim Procedural Guidelines, requesting establishment of panel to investigate denial of labor rights at Tridonex S de RL de CV auto parts plants in Matamoros, Tamaulipas, Mexico.

  • June 9, 2021: After review of May 10 complaint by interagency committee, USTR announces a request by US to Mexico to review whether workers at the Tridonex plant are being denied rights of free association and collective bargaining.

  • June 19, 2021: Mexico’s Ministries of Economy and Labor state that they have received US request regarding Tridonex plant and will review the case.

  • August 10, 2021: USTR and Mexican auto parts firm Tridonex announce agreement that Tridonex will provide severance, back pay and a commitment to neutrality in future union elections. Announcement also notes that the Government of Mexico has agreed to help facilitate workers’ rights training for Tridonex employees, monitor any union representation election at the facility, and investigate any claims of workers’ rights violations reported by employees at the plant. USTR Fact Sheet on the agreement here; Tridonex commitments/action plan here.

  • August 10, 2021: Joint Communiqué by Mexico’s Ministries of Economy and Labor notes the USTR announcement, and states that Mexico’s investigation of the petition concerning Tridonex had shown that the facts alleged took place prior to the entry into force of USMCA, therefore there was no denial of rights for workers at the plant within the meaning of USMCA.

  • August 11: At press conference, Mexican Secretary of Economy Tatiana Clouthier emphasizes that acts or facts which took place prior to the July 1, 2020 entry into force of USMCA are not subject to the treaty, and Mexico will not accept labor disputes under the Rapid Response Mechanism concerning facts prior to that date. Clouthier notes that the USTR agreement was reached on US territory, between USTR and Tridonex’s US parent company Cardone Industries, concerning actions to be taken by Tridonex.

  • 28 February 2022: Workers at Tridonex auto parts plant in Matamoros, Mexico choose the independent union SNITIS over the existing CTM-affiliate CITPME union, by 84% (1126 to 176). Mexican government announcement of results; USTR/US Labor Department statement; report by El Economista; by Reuters. While the CTM obtained an injunction (amparo) from a Mexican court protecting its representation of the Tridonex workers, reportedly the Fourth Collegiate Court denied this injunction on August 11, confirming recognition of SNITIS.

(2) GM/Silao

  • 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:

    1. 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.

    2. 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.

    3. 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.

(3) Panasonic Automotive Systems Mexico

  • 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.

(4) Teksid Hierro de México

  • June 6: 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).

(5) and (7) Manufacturas VU

  • 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 has 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 (Coahuila) 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 Coahuila (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 Coahuila, Mexico 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 Coahuila, Mexico. 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 auto parts 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 union 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 where employees at the time of a vote on union representation.

(6) BBB

  • 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

(8) Unique Fabricating de México

  • 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.

(9) Goodyear Fabricating

  • April 20, 2023: La Liga Sindical Obrera Mexicana (LSOM) files 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) suspends a vote by Goodyear workers on the collective bargaining agreement with the Miguel Lopez Trujillo union. CFCRL and Ministry of Labor denounce 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 reject the agreement, terminating the agreement with Miguel Lopez Trujillo union as of May 31, 2023.

  • May 22: USTR announces 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 announces 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 announce 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 reports 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.

(10) Grupo Yazaki

  • August 7: USTR announces its request for Mexican government to review labor rights concerns at Grupo Yazaki Planta León automotive wiring harness factory in Guanajuato, and suspends 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.

    • Mexican CFCRL online master list of collective bargaining agreements that have gone through the legitimation process provided in Mexico’s new labor law: 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). Inside US Trade reports August 18 that USTR is reviewing Mexico’s response.

(11) Draxton

  • 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).

(12) UNISA

  • 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.

  • 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.

(13) San Martín Mine

  • August 5, 2022: Los Mineros (Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúgicos y Similares de la República Mexicana) reported to have filed a Rapid Response Mechanism complaint with the US related to the 15-year strike at the Grupo México San Martín lead, zinc and copper mine near Sombrerete in Zacatecas.

  • June 16, 2022: USTR announces US has asked Mexico to review whether workers at San Martín Mine are being denied rights to freedom of association and collective bargaining. Request follows May 15 petition by AFL-CIO, United Steel Workers and Los Mineros.

  • June 21: Grupo México asserts 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 asserts 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).

  • August 1: Mexican government announces that it has transmitted to US the results of its investigation of the Rapid Response Mechanism petition regarding Grupo Mexico, and that it has 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. Links: Mexican government press release; reports by Reuters, El Economista.

  • August 7: Mexican president Andres Manuel Lopez Obrador admits that there are pending labor issues in Mexico’s mining sector, but states that Mexico will not use dispute settlement to avoid responsibility.

  • August 22: USTR announces that the US has 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 is the first time that any party has requested such a panel review.

    • US panel request asserts 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 asserts denial of rights through noncompliance with four named sections of Mexico’s Federal Labor Law. August 22 USTR press release notes that suspension of customs settlement remains in place for US imports from the San Martín mine.

    • Mexican Ministry of Economy responds on August 22 that it has received the panel request, states that it will defend Mexico’s decision in cooperation with Mexican labor authorities, and notes again (i) the legal principle of non-retroactivity of treaties, and (ii) as the dispute had been handled by the competent domestic bodies, 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 Mexico and its owner); La Jornada; El Universal (on statement by Grupo Mexico denying any violation and criticizing Los Mineros and its leader Napoleón Gómez Urrutia).

  • August 30: Panel constituted for dispute under USMCA Annex 31-A concerning the San Martín mine initiated August 22. Panelists: Gary Cwitco (non-national); 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 notes:

    • 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 (received by Secretariat on September 7) Panel decides, based on documentation available to it as of September 5, that the petition of the United States meets the prima facie requirements of Article 31-A.6 and the petition is thereby confirmed.

  • September 7: By letter to Alan Bonfiglio Ríos, the Panel:

    1. Pursuant to USMCA Article 31-1.7, makes a request for verification by Mexico; and requests “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. Advises that it will, following a Zoom meeting with the Parties scheduled for September 12, request additional information concerning the positions Mexico has adopted on the questions the Panel is charged with resolving; also that the Panel wishes 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 sets 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, Trabajadores coaligados) 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 inn-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.

(14) Aerotransportes Mas de Carga (Mas Air)

  • August 30: USTR announces 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 is 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 announces that Mexican government has accepted US request; Ministry of Labour and Social Welfare has 35 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.

OTHER PETITIONS:

Rights of Migrant women workers: March 23, 2021: Migrant workers Maritza Pérez Ovando and Adareli Ponce Hernández and petitioner organizations file petition against US, to Mexican government Secretariat of Labor and Social Welfare (STPS), concerning gender discrimination in US H-2A and H-2B non-immigrant visa programs. Petition alleges that petitioners have suffered discrimination due to failure of US to effectively enforce its domestic labor laws in accordance with Chapter 23 of the USMCA. Petitioner organizations include Centro de los Derechos del Migrante, Inc. (CDM) and 35 other unions and organizations active in labor rights, human rights, indigenous rights and migrant rights issues. Links: Press release; video of petitioners.

March 31, 2021: STPS Labor Policy and Institutional Relations Unit determines that the CDM petition is admissible.

US Meatpacking industry: May 12, 2021: Government of Mexico transmits letter to US Secretary of Labor Walsh, raising concerns regarding failure to comply with US labor laws in US agriculture and protein-packing industries, listing specific types of lack of compliance. Letter proposes cooperation under USMCA Article 23.12 to identify actions to address such non-compliance in US sectors and states and fully guarantee labor rights under US law and USMCA Chapter 23, while reserving right to recourse to dispute settlement (press release in Spanish; English).

June 4, 2021: CDM submits supplement to March 23 petition, signed by 59 human rights scholars from Mexico, Canada and US. December 9, 2021: US Department of Labor holds listening session for worker testimony about discrimination in the H-2 program. March 31, 2022: petitioners submit additional filing with more evidence of discrimination.

CANADA-MEXICO RAPID RESPONSE MECHANISM

Canada National Administrative Office (NAO) webpage on labor provisions in Canada’s FTAs, including USMCA

NAO Online form to report labour issues related to the Canada-United States-Mexico Agreement (CUSMA)

Frankische Industrial Pipes México S.A. de C.V.

  • March 11, 2023: Canada’s largest private sector union Unifor, and Mexican autoworker union Sindicato Independiente Nacional De Trabajadores Y Trabajadoras De La Industria Automotriz (SINTTIA), submit complaint to Canada NAO concerning “systematic and continual denial of rights to freedom of association and collective bargaining” by Fränkische Industrial Pipes México S.A. De C.V. at its factory in Silao.

  • March 13: Canada’s National Administrative Office (NAO) notifies submitters that petition has been accepted for review. Links: Unifor-SINTTIA press release; NAO webpage

  • May 24: Canadian government reported to be still considering this petition; SINTTIA said to be working on a recount in recent election.

  • June 14: Fränkische workers announce that they have been working with the company and the Canadian government, and a vote to elect a new union will be held on June 26.

Final report (from Canada NAO webpage):

  • During the review process, NAO officials undertook on-site visits, interviews, and engaged in discussions with all parties concerned in the complaint. However, given the company’s willingness to address the demands put forward in the complaint by the submitters, the NAO facilitated a dialogue between the concerned parties in order to reach an agreement.

  • Discussions with the parties were effective and led to concrete and positive outcomes, that is:

    • the company issued a public statement in which it committed to respect the effective exercise of freedom of association and collective bargaining rights of Fraenkische workers

    • the company reinstated three workers who supported SINTTIA with back pay as part of the submitters’ proposal for remediation

    • the union election vote by Fraenkische workers that took place on June 26, 2023 was conducted in a fair manner and its result was confirmed by the federal labour judge on July 11, 2023. SINTTIA won the vote and is now the majority representative union for Fraenkische workers.

  • In light of these developments, the NAO considers that the allegations were addressed and has closed the case against Fraenkische.

ARTICLES ON THE RRM

  • Prof. Lance Compa, Trump, Trade and Trabajo: Renegotiating NAFTA’s Labor Accord in a Fraught Political Climate, 26 Indiana J. Global Legal Studies 263 (2019)

  • Prof. Desiree LeClercq:

    • A Worker-Centered Trade Policy, 61 Columbia J. of Transnational Law 733 (2023)

    • May 16 2021 blogpost on recent RRM activity, on limited scope of Labor Rapid Response Mechanism with respect to labor rights in US

    • September 4, 2023 Labor Day blogpost: argues that Labor Rapid Response Mechanism excludes protections for vulnerable workers in US trade sectors through footnote in USMCA Annex 31-A; urges action to delete the footnote to make USMCA more equitable; also urges that Mexican government invoke RRM to protest alleged freedom of association and collective bargaining violations in US airline companies.

Last updated: September 16, 2023