Washington has intensified complaints against the facilities in the neighboring country since the trade agreement between Canada, the United States and Mexico, TMEC, went into effect in 2020, including cases that have paved the way for new unions to obtain better wages and benefits.
“This announcement again demonstrates the Biden-Harris administration’s commitment to using the Labor Rapid Response Mechanism to safeguard workers’ rights and the promises enshrined in USMCA,” Tai said in a statement.
“Today’s action highlights the United States’ approach to ensuring that workers in all sectors have freedom of association and collective bargaining rights. As in previous matters, we look forward to working closely with the government of Mexico to address current issues. in this case,” he added.
The USTR said that Tai had directed Treasury Secretary Janet Yellen to suspend final settlement of customs accounts related to inflows of goods from the facility.
The Interagency Labor Committee for Monitoring and Compliance (ILC) received a petition on May 12 from a Mexican labor organization, the Authentic Labor Front (FAT), and the Interior Industries Union, which represents to the workers.
It alleged that INISA is coercing workers to accept company-proposed revisions to the collective bargaining agreement and intervening in the internal affairs of the union. He also argues that the company is not negotiating in good faith with the union.
The ILC reviewed the petition and found what it called “sufficient and credible evidence of a denial of rights to permit good faith invocation of enforcement mechanisms,” the USTR said.
The USTR application gives Mexico 10 days to agree to conduct a review and then, if it agrees, 45 days to complete it.
