The Office of the U.S. Trade Representative and the Department of Labor announced Aug. 16 the successful resolution of a facility-specific rapid response labor mechanism petition under the USMCA regarding the situation at the Teksid Hierro de México automotive parts facility in Frontera, State of Coahuila.
U.S. authorities had alleged that workers at that facility were being denied the rights of free association and collective bargaining. Following a review and a determination by Mexican authorities that the facility was indeed denying labor rights, the facility has taken the following actions, which will be monitored by the Mexican government:
- providing the independent union with access to the facility for the purpose of carrying out worker representation;
- providing a designated office space within the company’s facility to the independent union to facilitate the representation of workers within the facility;
- payment of union dues withheld from workers and owed to the independent union;
- reinstating and offering back pay to 36 workers as well as compensation to an additional worker, each of whom was allegedly terminated for participating in a protest against the company; and
- issuing a neutrality statement and a statement that the only valid collective bargaining agreement is the one deposited at the federal level.
U.S. Trade Representative Katherine Tai described the successful resolution of these labor concerns as proof that “we are creating a more competitive North American economy where workers and unions can operate on a level playing field”. She added that U.S. authorities “look forward to continuing our close collaboration with the Government of Mexico to defend the rights to freedom of association and collective bargaining.”
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