The Department of Labor and the Office of the Trade Representative announced today the resolution of a U.S.-Mexico-Canada Agreement (USMCA) Rapid Response Labor Mechanism matter, following allegations of labor rights violations at the Volkswagen assembly plant in Puebla, Mexico.
After the U.S. requested a review by the Mexican government on May 28, 2024, both governments negotiated a remediation course. This led to Volkswagen reinstating eight workers who had been unjustly terminated, awarding them full back pay. A ninth worker received full severance.
Volkswagen also implemented guidelines to prevent future employer interference in union affairs and protect workers' rights to freely associate. The Mexican government provided training and conducted periodic inspections at the facility to ensure compliance with Mexican laws protecting workers' freedom of association and collective bargaining rights.
“The U.S. and Mexican governments have collaborated to assure workers’ fundamental rights to organize and bargain collectively,” said Deputy Undersecretary for International Labor Affairs Thea Lee. “Volkswagen’s efforts under this course of remediation underscore its commitment to compliance with Mexican law and a just working environment.”
“Today’s resolution marks the twenty-first case the United States and Mexico have successfully resolved under the RRM. Through this case, workers at Mexico’s largest automobile manufacturing plant have been reassured they can exercise their freedom of association and collective bargaining rights freely,” said Ambassador Katherine Tai. “We commend the Government of Mexico and Volkswagen de México’s efforts to strengthen labor protections at the facility.”
Volkswagen's Puebla plant is Mexico's largest automobile assembly plant, employing approximately 6,100 assembly line workers, 5,000 supervisory or trusted employees, and thousands of parts-assembly workers. The plant produces about 2,300 vehicles per day, with over 300,000 vehicles exported in 2023—67 percent destined for sale in the U.S. market.
The USMCA Rapid Response Labor Mechanism allows the U.S. to take enforcement action based on labor conditions at individual factories in Mexico if such facilities fail to comply with domestic freedom of association and collective bargaining laws.
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