The first two proceedings of the Rapid Response Labour Mechanism have worked successfully, demonstrating effectiveness of labour rules under the United States-Mexico-Canada Agreement (USMCA).

Tridonex case

Mexican auto parts company Tridonex on 10 August 2021 agreed to ensure worker rights, pay severance and back wages to dismissed employees to settle an early labour rights complaint under the new North American trade deal.

The agreement follows the request for review under the Rapid Response Labour Mechanism that the United States sent to Mexico on 9 June2021 following the filing of a petition by the American Federation of Labour and Congress of Industrial Organizations (AFL-CIO) and other groups on 10 May 2021. 

As part of this agreement, Tridonex will provide severance and six months of backpay to the workers dismissed from the plant, support the right of its workers to determine their union representation without coercion, provide training to all Tridonex workers on their rights to collective bargaining and freedom of association. Equally, Tridonex will remain neutral in any election for union representation at its facility, revise its procedures and train its managers on fair workforce reduction procedures and maintain and staff an employee hotline phone number to receive and respond to complaints of violations of workers’ rights in the facility.

In addition to these commitments made by Tridonex, the Government of Mexico has agreed to help facilitating 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.

In a press release, the Company announced its commitment to a "voluntary action plan" and to implementing further measures to continue to uphold workers' rights.

The Mexican government, through the Ministries of Labour and Economy, said: "The Mexican government is respectful of the agreements reached by the company with the US government and will continue to follow up on the issue, within the scope of its powers."

General Motors Case

On 12 May 2021, Ms. Tai announced that the United States utilised the RRLM by requesting that Mexico review a Denial of Rights at a General Motors (GM) facility in Guanajuato, Mexico. The request alleges that workers at the GM facility have been denied the right of free association and collective bargaining.

In April, there was a vote to keep or reject the applied collective contract marred by problems, including spoiled ballots.

The United States lodged a complaint under the USMCA's "Rapid Response Labour Mechanism” and Mexico agreed to repeat the vote in the presence of independent observers and other safeguards from the United Nations' International Labour Organization (ILO) and Mexico's National Electoral Institute (INE).

Both groups, along with federal labour officials, had been posted inside the plant before the vote to interview workers and collect complaints as part of a remediation plan agreed by Mexico and the United States.

The new vote held in August marks an important test of labour rules under the USMCA.

U.S. Trade Representative Katherine Tai congratulated the Mexican Government for overseeing the vote. "Free and fair union votes are a critical component of freedom of association and collective bargaining and the related labour provisions of the USMCA," she added.

Esteban Martinez, a Labour Ministry overseeing Mexico's implementation of a sweeping labour reform, noted that GM, since April, has been more active in ensuring a fair vote, which is required as part of a national effort to eliminate sweetheart contracts between business-friendly unions and companies. Other companies are taking a cue from GM and ramping up efforts to ensure fair votes without union or company interference, Martinez said, noting "a change in attitude."