USMCA Labor Dispute at Wiring Harness Plant Resolved

The United States and Mexico today announced Wednesday 4 October resolution to the situation at a Grupo Yazaki auto components facility in León, Mexico.  

United States Trade Representative Katherine Tai had requested the Government of Mexico to review the matter under the United States-Mexico-Canada Agreement’s (USMCA) Rapid Response Labor Mechanism (RRM).  The Government of Mexico declined the request but "worked with the facility to ensure no ongoing denial of rights was taking place."
 
“I am thrilled by this positive outcome for workers at Grupo Yazaki,” said Ambassador Katherine Tai. 

 Deputy Undersecretary for International Affairs Thea Lee said “We will continue to work closely with the Mexican government to find creative paths so that every worker’s voice is heard, respected, and valued, and workers fully understand their union voting rights.”

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

• Grupo Yazaki posting a neutrality statement on its North American website and distributing physical copies across its facilities in Mexico, including at Planta León, affirming its commitment to safeguarding the right to freedom of association and sharing an internal hotline for workers to submit concerns related to their labor rights;
• The Government of Mexico and the International Labor Organization delivering trainings on freedom of association and collective bargaining rights at the facility for workers, for company representatives, and union representatives;
• The Government of Mexico posting a statement in the Planta León facility explaining that dissemination of misinformation during union democracy votes is considered an irregularity and should be reported to government authorities.

Background
 

A subsidiary of Yazaki Corp., Grupo Yazaki S.A. de C.V. is an auto parts manufacturer with facilities in eight Mexican states, employing 58,000 workers. The León facility has more than 2,800 workers and manufactures electronic automotive parts and components used at major auto assembly plants.

The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC).  On July 5, the ILC received an RRM petition from the Casa Obrera del Bajío, a Mexican labor organization.  The petition alleged a number of irregularities that occurred during the facility’s March 31 “legitimization” vote in which workers voted on whether the existing collective bargaining agreement should be upheld. 

As a result of the above actions taken by the facility and the Government of Mexico to resolve the issue, the United States agrees that there is no ongoing denial of rights.  Ambassador Tai’s letter directing the Secretary of the Treasury to resume liquidation of entries of goods from the Grupo Yazaki Planta León facility is available here.