USMCA: CAT Plant Dispute Resolved

 The United States announced the resolution of another USMCA Rapid Response Labor Mechanism (RRM) dispute at a  Caterpillar, Inc. subsidiary in Nuevo Laredo, that produces remanufactured auto parts. The plant's workers remain on strike.

After the United States requested Mexico’s review of the matter, Mexico and the company took several actions to address the denials of rights the United States found, including actions to reinstate dismissed workers and correct other employer interference in union activities.

“While we recognize that the workers at Tecnología Modificada remain on strike, we are hopeful that the concrete remediation measures the Government of Mexico facilitated with the employer have laid the foundation for the resumption and successful resolution of a good faith bargaining process,” said Deputy Undersecretary for International Affairs Thea Lee. “We are pleased to have seen the development of company policies on union rights, management training, and offers of reinstatement and full backpay. We look forward to continued partnership with the Government of Mexico.”

Actions taken by the facility and the Government of Mexico to address the matter include:

• The company offered reinstatement to two unlawfully dismissed workers under the same terms, conditions, and circumstances from before their termination, including full backpay and benefits from the date of termination until the start of the strike;
• The company issued and distributed a written neutrality statement in which it commits to respect freedom of association and collective bargaining rights;
• The company issued guidelines that govern conduct of personnel, in which it commits to comply with the neutrality statement and the rights granted to workers, union representatives, and union advisors within the facility;
• The company implemented a zero-tolerance policy for violations of the neutrality statement and guidelines, including a commitment to sanction any action or omission by its personnel that violates their principle;
• The Government of Mexico and the company trained all employees who are currently working on freedom of association and collective bargaining rights and responsibilities.  Because the facility is currently on strike, and most workers are not currently working, the company and Mexico committed to provide additional training for striking workers when they return to work.

• 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.