WASHINGTON – The United States today announced the successful resolution of the USMCA Rapid Response Labor Mechanism (RRM) matter at the Odisa Concrete Equipment, S.A. de C.V. (Odisa) facility in Hidalgo, Mexico, which specializes in manufacturing equipment for concrete batching and handling. This matter was brought to the attention of the U.S. government through a petition. After the United States requested the Government of Mexico’s review of the matter, Mexico and the company took several actions to remediate the denials of rights identified by the United States, including reinstating an unlawfully dismissed worker with backpay, reimbursing workers for improperly deducted union dues, and addressing other employer interference in union affairs.
“The successful resolution of this case reflects the RRM’s effectiveness as a tool for holding employers accountable and enabling workers to freely exercise their union rights,” said Ambassador Katherine Tai. “We commend the Government of Mexico and Odisa for their actions to remediate the denials of labor rights that occurred. The Biden-Harris Administration celebrates this outcome, and recalls that nearly 42,000 workers have directly benefited from the mechanism to date.”
“We commend the actions taken by Odisa Concrete Equipment and the government of Mexico to resolve the alleged labor violations at the facility and ensure that freedom of association is fully respected,” said Deputy Undersecretary for International Labor Affairs Thea Lee. “The reinstatement of an improperly dismissed worker involved in union activity underscores a commitment to ensuring that workers can freely choose their union and engage in collective bargaining.”
Actions taken by the facility to address the matter include:
- Reinstating and providing backpay and benefits to one worker who had been dismissed in retaliation for his union activity;
- Reimbursing workers for union dues that were improperly deducted;
- Recognizing and engaging in bargaining with the petitioner union, including by signing a collective bargaining agreement (CBA) that was subsequently approved by a majority worker vote;
- Adopting, disseminating, and implementing a neutrality statement and company guidelines on freedom of association and collective bargaining, including a zero-tolerance policy for violations, and training all company personnel on the guidelines and neutrality commitments; and
- Providing a complaint mechanism for workers to anonymously report any violations of their rights and breaches of company guidelines on freedom of association and collective bargaining.
Actions taken by the Government of Mexico to address the matter include:
- Overseeing a free and fair vote by workers at the facility that resulted in the approval of a new CBA between the company and petitioner union;
- Delivering in-person trainings for all company personnel on freedom of association and collective bargaining;
- Monitoring the facility and engaging with the workers and the company throughout its review period; and
- Offering an email address for workers to anonymously report any intimidation, coercion, or threats with respect to their selection of a union, union activities, non-neutrality, or interference in internal union affairs.
Based on these measures, Ambassador Tai has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility.
Background
The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On September 23, 2024, the ILC received an RRM petition from the Sindicato Nacional de Trabajadores de la Construcción, Acarreo de Materiales, Operación de Autopistas, Transporte en General, Comercialización y Servicios en General, Seguridad Privada, Hospitales, Oficinas, Escuelas Particulares, Químico y Plástico, Actividades y Conexos. The petition alleged Odisa had violated workers’ right to collective bargaining, effective union democracy, and the full exercise of freedom of association, including by dismissing workers affiliated with the union. The ILC reviews RRM petitions that it receives, and the accompanying information, within 30 days. The ILC determined that there was sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms.
As a result, the United States Trade Representative submitted a request to Mexico to review the matter. The Government of Mexico accepted the request, found denials of rights related to freedom of association and collective bargaining, and worked with the facility to take a number of remedial steps within their review period, which the United States has reviewed and concluded to have remedied the situation.
A copy of the request for review can be found here.
A copy of the letter to the Secretary of the Treasury can be found here.
Information about previous requests can be found here.
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