The U.S. Department of Labor announced on March 27 that the United States has secured its second victory before a United States-Mexico-Canada Agreement (USMCA) panel regarding labor rights violations at the Camino Rojo Mine in Zacatecas, Mexico.
The case involved allegations of denial of labor rights and violence against workers, including actions by known narcotraffickers, at a facility owned by Orla Mining that produces gold and zinc. The mine was identified as producing critical minerals considered vital to national security by the Trump administration. According to the department, "This is the second panel victory under the USMCA’s Rapid Response Labor Mechanism, and the second successful labor case under the dispute settlement mechanism of any trade agreement. The panel determination is a key win for the Trump administration as it seeks to level the playing field for American workers by eliminating labor abuses and unfair trade practices abroad."
The U.S. argued that Camino Rojo stripped workers of their union rights through threats and violence so that a company-preferred union could be installed and retained. Panel proceedings corroborated claims that mine operators contracted a known narcotrafficker to interrupt union meetings with armed individuals who made death threats and forced workers to accept management's preferred union. Armed people also reportedly visited workers’ homes to pressure them into joining this union.
"This panel win sends a loud and clear message: We will not tolerate actions by companies or criminals that undermine American workers," said U.S. Secretary of Labor Lori Chavez-DeRemer, according to an official statement. "Mexico committed under USMCA to addressing violence against workers. When they fail to follow through, they create an uneven playing field and weaken critical supply chains."
After reviewing evidence, the panel found Camino Rojo committed denial of rights through employer interference and acquiescence to worker intimidation, with insufficient remedies provided by either Mexican authorities or Orla Mining itself.
The Bureau of International Labor Affairs coordinated with the U.S. Trade Representative in investigating this case, which led to resolution in favor of the United States according to the official roster page as listed on the organization's website. In related news, on August 24, 2022, the Department of Labor announced $3.4 million in Women in Apprenticeship and Nontraditional Occupations grants administered by its Women’s Bureau and Employment and Training Administration; Phoenix, Arizona received $542,358 through Fresh Start Women’s Foundation.
