WASHINGTON – United States Trade Representative Katherine Tai today announced that the United States has requested a Rapid Response Labor Mechanism (RRM) panel for the sixth time under the United-States Mexico-Canada Agreement (USMCA). The panel pertains to a labor dispute at a facility operated by Industrias Tecnos, S.A. de C.V. in Cuernavaca, Morelos.
Today’s announcement follows a request for review that the United States sent to Mexico on June 24, 2024 asking Mexico to review whether workers at the facility, which manufactures small arms ammunition, are being denied the right to freedom of association and collective bargaining.
In at least 22 cases to date, the United States and Mexico have been able to cooperate to successfully address labor rights violations at the Mexican facilities in question. An agreed resolution was not met in this matter, and the United States therefore has determined that it is appropriate to request a panel to verify the facility’s compliance with Mexican labor laws.
“This panel request reinforces the Biden-Harris Administration’s steadfast resolve to foster work environments free from discrimination, reprisals, and other forms of employer interference because of workers’ union activity,” said Ambassador Katherine Tai. “Holding companies accountable for violations of Mexico’s labor commitments in the USMCA is key to fulfilling the RRM’s mission to leverage the power of trade to lift workers up at home and around the world.”
“Today’s panel request is aimed at safeguarding workers’ fundamental freedom of association and collective bargaining rights,” said Deputy Undersecretary for International Labor Affairs Thea Lee. “Workers at Industrias Tecnos must be able to exercise their rights without interference or retaliation. We are committed to collaborating with the government of Mexico to ensure that these workers can freely choose their union representation, without fear or coercion, and to uphold the principles of the U.S.-Mexico-Canada Agreement.”
Background
The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On May 23, 2024, the ILC received an RRM petition from Sindicato Independiente de Trabajadores y Empleados, Transporte, Carga y Descarga, Exploración y Explotación de Minerales Basicos, Productos Metálicos, Similares y Conexos de la Republica Mexicana (Sindicato Metálico). The petition alleged that Industrias Tecnos and the union that currently holds collective bargaining rights at the facility, Sindicato Único de Trabajadores de la Industria Química, Plástica, Metálica y Transformadora de toda clase de Productos, Derivados, Similares y Conexos de la República Mexicana, discouraged affiliation to Sindicato Metálico and unjustly dismissed workers for engaging in union activities. 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 U.S. Trade Representative submitted a request to the Government of Mexico to review whether workers at the Industrias Tecnos facility were being denied the right to freedom of association and collective bargaining. Mexico had 10 days to decide whether to accept the U.S. request for review and, having agreed to do so, 45 days to complete the review.
At the conclusion of its 45-day review period, Mexico issued a report finding no Denial of Rights at the Facility. The United States has consulted in good faith with Mexico but has been unable to agree upon a course of remediation. The United States considers the Denial of Rights to be ongoing, and therefore is requesting establishment of an RRM panel to review the situation.
A copy of the panel request can be found here.
