VU Labor Violations Substantiated; Remediation Under Discussion

Mexico is beginning consultations on how to remediate violations at Manufacturas VU, a Michigan-headquartered supplier of interior automotive trims, after its investigation found serious irregularities, and found that the company placed obstacles for its workers to choose their own union and to collectively bargain. The office of the Economy Secretary made the announcement March 16. It is the second time VU's plant in Piedras Negras has been the subject of a Rapid Response Mechanism complaint from the Office of the U.S. Trade Representative. Mexico and the U.S. have 10 days to put forward a remediation plan. So far, no fines or curtailed tariff benefits have been imposed on Mexican exporters targeted in the Rapid Response Labor Mechanism under USMCA. This is the only plant with repeated complaints (see 2301300030).