US, Mexico Resolve Labor Complaint Involving Mexican Plant

The U.S. and Mexico this week resolved a complaint involving workers' rights at the Draxton auto parts foundry in Irapuato, Guanajuato, the Office of the U.S. Trade Representative announced July 31, marking the fifth time the countries agreed on a formal course of remediation under the USMCA's Rapid Response Labor Mechanism.

The announcement came after the U.S. in May requested a review of the plant based on allegations that the factory was obstructing workers’ freedom of association and right to collective bargaining (see 2305310083). Under the remediation plan, Mexico will ensure that Draxton reinstates a worker who was terminated due to union activities and that there will be no discrimination or harassment of the worker "moving forward." Mexico will also ensure Draxton issues a written statement ensuring their commitment to workers' rights to collective bargaining and issues guidelines for employee conduct at the company, USTR said. Draxton also will have to print a copy of the current collective bargaining agreement and distribute it to employees.

The Mexican government also agreed to conduct in-person workers' rights training for all company employees, monitor the facility and "initiate sanctions proceedings" under Mexican law if it has information that "shows violations of Mexican law." Mexico agreed to impose "appropriate sanctions against individuals, labor organizations, or companies that have been found to violate Mexican law."

Mexico's economy ministry said its investigation revealed Draxton's conduct "may constitute violations of Mexican labor law and a denial of collective rights by the company," according to an unofficial translation.

“The Government of Mexico has been an outstanding partner and we look forward to continued collaboration in this case," USTR Katherine Tai said. "The United States will closely monitor the plan’s implementation.”

Draxton didn't immediately respond to a request for comment.