USMCA Complaint Targets Mexican Firm for First Time

The Administration is once again making use of the rapid response labor mechanism in the US- Mexico-Canada Agreement to deal with alleged worker rights violations at a Mexican factory, this time naming a Mexican-controlled entity.

US Trade Representative Katherine Tai announced yesterday she has asked Mexico to review whether workers at a Draxton facility in Irapuato, Guanajuato are being denied the rights to freedom of association and collective bargaining.

This self-initiated request marks the ninth time the United States has formally invoked the USMCA’s Rapid Response Labor Mechanism, the second time to do so as a self-initiated action, and the first request targeting an Mexican firm.  The eight prior complaints have addressed US-controlled factories in Mexico.

The decision to self-initiate a review comes after information was received appearing to indicate several serious denials of labor rights, including the termination of a union official and interference of related activities in order to control the union.

When workers at the Draxton facility tried to organize a new union, led by the former official, they experienced harassment, surveillance and intimidation and the former union official faced threats and violence at his house, according to USTR. Also, workers did not get their collective bargaining agreement before voting on it in 2022 and still have not received it.

USTR has submitted a request to the Government of Mexico to review whether those employed at the Draxton facility are being denied the right to freedom of association and collective bargaining. Mexico has ten days to agree to conduct a review and, if it agrees, 45 days from yesterday to complete the review.

Draxton is a subsidiary of Grupo Saltillo, which has  interests in Auto parts and Housewares.

In connection with the US request, Ms. Tai has also directed the Treasury Department to suspend the liquidation for all unliquidated entries of goods from the Draxton Irapuato facility.