US resolves labor dispute at Mexican metal alloys facility

Webp michaelmikulka
Michael C. Mikulka, Acting Deputy Inspector General | US Department of Labor (DOL)

US resolves labor dispute at Mexican metal alloys facility

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The United States has announced the successful resolution of a labor dispute involving the Modern Metal Alloys, S.A. de C.V. (MMA) facility in Querétaro, Mexico. This development marks the resumption of tariff liquidation on goods from the MMA facility, which produces aluminum for auto parts.

The resolution is seen as a victory for the Trump Administration's trade policies, emphasizing fair worker protections. The U.S. Department of Labor’s Bureau of International Labor Affairs and the Office of the U.S. Trade Representative worked with Mexican authorities to address workers' claims at MMA.

Key actions taken by MMA include reinstating a dismissed worker with backpay, restoring previous work assignments, granting union access to facilities, negotiating a new collective bargaining agreement, and implementing guidelines on freedom of association. A complaint mechanism for workers was also established.

Mexico contributed by providing training on collective bargaining and setting up an anonymous reporting system for workers facing intimidation or interference regarding union activities.

Ambassador Greer directed the Secretary of the Treasury to resume tariff liquidation following these measures. The Rapid Response Labor Mechanism (RRM), initiated during Trump's first term, aims to ensure compliance with labor laws and maintain fair competition.

The Interagency Labor Committee for Monitoring and Enforcement received an RRM petition from Transformación Sindical alleging violations at MMA. Following an investigation that included interviews and evidence collection in Querétaro, sufficient evidence was found to support enforcement action.

Subsequent negotiations led to additional remedial steps by MMA and Mexico, resulting in no ongoing denial of rights according to U.S. authorities.

For further details on efforts to protect American workers and combat foreign labor abuse, more information is available from the Department of Labor.

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