The U.S. government last week announced the successful resolution of a labor dispute at a Mexico denim factory, marking the end of a process that began with a complaint from garment workers in May.
A USMCA facility-specific Rapid Rapid Response Labor Mechanism (RRM) petition, filed with the U.S. Trade Representative (USTR) and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC) this spring, kickstarted an investigation into alleged union-busting activities at the Industrias del Interior (INISA) denim factory in the state of Aguascalientes. The petition was filed by the Frente Auténtico del Trabajo (FAT), a Mexican labor group, and Sindicato de Industrias del Interior, a union that represents workers at the facility.
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INISA interfered with employees’ rights to freedom of association and collective bargaining, and failed to bargain in good faith with the union, the petition alleged. After deliberating on the issue for a month, ILC established that there was significant credible evidence that the petition’s claims were true, and Mexico was called upon to conduct its own review of the situation. In late July, the country’s government affirmed that the violations had taken place.
The U.S. and Mexico agreed on a plan to address the situation in early August. According to a statement form the U.S. Trade Representative (USTR) on Monday, the plan has been implemented, and workers’ rights have been restored.
“This matter marked the first time the United States invoked the RRM outside of the autos sector, exemplifying the Biden-Harris Administration’s continued commitment to ensuring our trade tools serve to defend workers’ rights across a wide range of industries,” Ambassador Katherine Tai said. “We commend the Government of Mexico and INISA for their efforts to encourage positive outcomes for workers at this facility.”
Deputy Undersecretary for International Affairs Thea Lee applauded the first positive resolution of an RRM case in the garment sector. “The case shows that our commitment to partnering with Mexico to resolve cases, regardless of covered sector, leads to positive outcomes for workers, the core interest of both governments,” she said.
The government of Mexico said INISA will take subsequent actions to ensure that the issue is rectified, including paying vouchers for certain benefits retroactively, and increasing their value. It will also post a statement avowing its neutrality surrounding unionization and its zero-tolerance policy for interference. A complaint mechanism will be established for workers, allowing them to anonymously report violations of their rights, and the union’s office and its full-time union work employees will be relocated to an area separate from the company’s human resources department to deter any sort of influence.
The Mexican government agreed to provide in-person training for workers to clarify their rights to freedom of association and collective bargaining, and it will also distribute written information at the facility.
