1st USMCA Labor Case on Garment Maker

The United States has asked Mexico to look into whether workers at a Mexican denim factory are being denied the right to freedom of association and collective bargaining.

The request announced Monday marks the first time the garment industry has been the subject of a US-Mexico-Canada Agreement Rapid Response Labor Mechanism filing.

It is also the 10th time that the Administration has formally invoked the RRM.

The US action comes in response to a petition alleging that workers at an Industrias del Interior garment facility in the state of Aguascalientes, are being denied the right to freedom of association and collective bargaining. The Factory sews for US fashion brand Levi Strauss & Co.

“This announcement demonstrates again the Biden-Harris Administration’s commitment to using the Rapid Response Labor Mechanism to safeguard the rights of workers and the promises enshrined in the USMCA,” US Trade Representative Katherine Tai said. “Today’s action highlights the United States’ focus in ensuring 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 the issues present in this case.”

Entry of Goods
In connection with the US request, Ms. Tai directed Treasury Secretary Janet Yellen to suspend the final settlement of customs accounts related to entries of goods from the facility. 

Last month, the Interagency Labor Committee for Monitoring and Enforcement received an RRM petition from the Frente Auténtico del Trabajo, a Mexican labor organization, and the Sindicato de Industrias del Interior, a union representing workers at the facility.

The petition alleged that INISA, which manufactures denim garments, is committing acts of employer interference by coercing workers to accept the company’s proposed collective bargaining agreement revisions and intervening in the union’s internal affairs. The petition also alleged INISA is failing to bargain in good faith with the union.

The ILC determined that there is sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms, and USTR asked Mexico to review the allegations.

Mexico has ten days to agree to conduct a review and, if it agrees, 45 days from yesterday to complete the review.