US Agrees With AFL-CIO That Tridonex Labor Issues in Mexico Should Be Investigated

The U.S. activated the rapid response mechanism under USMCA for the second time, as U.S. Trade Representative Katherine Tai and Labor Secretary Marty Walsh agreed with the AFL-CIO and other petitioners that there is “sufficient credible evidence” that Tridonex workers at an auto parts factory in Matamoros are being denied free association and collective bargaining rights.

“Enforcing the higher labor standards in the USMCA is a core pillar of the Biden-Harris Administration’s worker-centered trade policy,” Tai said in a release the evening of June 9. “The rapid response mechanism was created to quickly address labor disputes, and this announcement demonstrates our commitment to using the tools in the agreement to stand up for workers at home and abroad.”

Mexico has 45 days to determine if it agrees labor rights are being denied, and to remediate the issue. If it does not agree, a rapid response panel can be formed.

CBP may delay final settlement of customs accounts related to entries of goods from the Tridonex plant now. If the issue is settled between Mexico and the U.S. by mutual agreement, or a panel determines there was no denial of rights, settlement will resume immediately.

Mexico and the U.S. will consult for 10 days if they agree there is a denial of rights, “and shall endeavor to agree upon a course of remediation that will remediate the denial of rights without interrupting trade,” the USMCA says.

If they can't agree, a panel can be formed, and if it rules with the U.S., the U.S. can suspend the tariff benefits of the goods made at that factory, or penalties on those goods.

AFL-CIO President Richard Trumka said, “We hope the process will result in justice for the many workers whose jobs and livelihoods were impacted by attempting to exercise their basic worker rights, as well as hold their employer accountable for violating their commitments under the USMCA. Employers need to be deterred from engaging with sham 'protection unions,' whose leaders often receive kickbacks and negotiate secret deals with company bosses that undermine workers. The results of this case can send a clear message to other employers that respecting workers’ rights is an imperative.”