The United States has asked Mexico to review whether workers at a German-owned leatherworks supplying the automotive industry are being denied the right to freedom of association and collective bargaining.
The United States has suspended liquidation on unliquidated entries of goods from the Bader de Mexico facility in the city of Leon, Mexico.
The facility specializes in manufacturing premium leather for the automotive industry. Gernam parent Bader GmbH & Co. KG, is a leading supplier of leather trim to all major auto manufacturers from Acura to Volvo.
The request, which was made in response to a petition, marks the twenty-eighth time the United States has formally invoked the Rapid Response Labor Mechanism (RRM) in the United States-Mexico-Canada Agreement (USMCA).
“We are deeply concerned by the reports of anti-union actions at the Bader facility. Such conduct is unacceptable and erodes workers’ fundamental rights to freedom of association and collective bargaining,” said Deputy Undersecretary for International Labor Affairs Thea Lee.
The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On August 15, 2024 the ILC received an RRM petition from a dismissed worker associated with the Sindicato Industrial de Trabajadores y Empleados del Calzado y Comercio del Estado de Guanajuato (SITECCC-CAT). The petition alleged that Bader de Mexico is violating workers’ rights to freedom of association and collective bargaining, including by creating a company-controlled labor committee and dismissing workers for their union activity.
The petition also alleged that the firings and other coercive actions, including harassment, surveillance, and intimidation of workers, constitute a Denial of Rights at the facility. The ILC reviews RRM petitions that it receives and the accompanying information, within 30 days.
The ILC reviewed the petition and relevant information and determined that there is sufficient, credible evidence of a denial of rights enabling the good faith invocation of the USMCA Rapid Response Mechanism. As a result, the United States Trade Representative has submitted a request to Mexico that Mexico review whether workers at Bader de Mexico are being denied the right to freedom of association and collective bargaining. Mexico has 10 days to agree to conduct a review and, if it agrees, 45 days from today to complete the review.
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.
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