USMCA - Mining Dispute Outside Treaty Scope: Mexico

In a joint communiqué issued by Mexico's Ministry of Economy and Ministry of Labor and Social Welfare, the country responded to the US Government regarding the labor dispute at the country's largest underground mine, San Martín Mine in Sombrerete, Zacatecas.

The mine is operated by Grupo México, which has been accused of denying rights to the National Union of Mining, Metallurgical, Steel and Similar Workers of the Republic of Mexico (Mining Union).

This labor dispute dates back to July 2007, when the Mining Union went on strike at the San Martín Mine. After a 16-year litigation process, the Federal Conciliation and Arbitration Board (JFCA) annulled an agreement signed between Grupo México and a coalition of workers on June 9, 2023. The JFCA recognized the Mining Union as the rightful holder of the collective agreement and ordered Grupo México to pay back wages and benefits, thereby effectively ending the strike.

The Mexican Government clarified that this dispute falls outside the scope of the Rapid Response Labor Mechanism in Specific Facilities (MLRR) as outlined in the Treaty between the United Mexican States, the United States of America, and Canada (known in Mexica as T-MEC).

The Government of Mexico's investigation into the alleged denial of rights by Grupo México indicated that the events leading to the strike and the subsequent denial of rights occurred before the implementation of the T-MEC in 2020. Consequently, under the principle of non-retroactivity of the law, the MLRR of the T-MEC does not apply to this dispute.

Further, there is no evidence that the San Martín Mine exports goods to the United States, which further places this dispute outside the purview of the MLRR and the T-MEC.

The Mexican Government concluded that the dispute would be settled under Mexican jurisdiction, as it falls outside the MLRR of the T-MEC. It reaffirmed its commitment to ensure the rights of Mexican workers are respected and upheld according to national laws and authorities.