US, Mexico Flogged Goodyear on Labor. A Denim Factory Could be Next.
The U.S. and Mexico last week announced measures to correct worker rights violations at a Goodyear tire manufacturing facility in the state of San Luis Potosí. The marks the fourth time since the United States-Mexico-Canada Agreement (USMCA) went into effect that the trade partners agreed on a formal correction plan for corporate labor abuses.
The U.S. Trade Representative (USTR) on May 22 asked Mexico look into allegations that Goodyear didn’t honor the terms of a sector-wide agreement for the rubber manufacturing industry. Last week, the results of Mexican government investigation confirmed that workers at the factory were denied their right to freedom of association and collective bargaining.
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The Goodyear judgment comes just weeks after the USTR intervened in a complaint from Mexican garment workers in the state of Aguascalientes who claimed the denim manufacturer they work for has engaged in union-busting activities. Ambassador Katherine Tai said that the USTR asked Mexico to follow up on the allegations, which was lodged as a Facility-Specific Rapid Response Labor Mechanism (RRM) petition similar to the complaint brought by Goodyear employees.
The case marked the 10th time that a RRM has been invoked by the U.S. under USMCA. The USTR and the Secretary of Labor, who co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC), found “sufficient, credible evidence” that the denim manufacturer interfered in internal union affairs and tried to pressure workers into accepting revisions to a collective bargaining agreement. The ILC gave the Mexican government 45 days from its June 12 decision to conduct its own factory review.
Last week, Ambassador Tai said that Mexico’s findings in the Goodyear case and remediation recommendations will help restore workers’ rights. “The United States will closely monitor the plan’s implementation,” she said. “I commend the Government of Mexico for its commitment to bringing this facility into compliance with Mexico’s labor law and for raising awareness of the applicability of the ‘contrato ley’ across the sector.”
Going forward, Mexican government officials will ensure that Goodyear distributes copies of the contrato ley, or sector-wide agreement, at its facility. The factory’s wages and benefits will be monitored for their compliance with the terms of the agreement, and Goodyear will be held responsible for repaying workers for any missed compensation stemming from its earlier compliance failure.
Goodyear will also issue public written statements detailing its commitment to respecting the rights of workers to freely associate and engage in collective bargaining, and promise not to obstruct union activities. The company must post information about how workers can file complaints both internally, and with the Mexican government, if their rights are violated. Goodyear must also inform workers about the reasons the determination was made that it denied workers their rights, and conduct in-person worker rights training for all company personnel. The U.S. and Mexico set Jan. 19, 2024 as the deadline for when Goodyear must finish remediating the labor rights’ lapse.
“The Biden-Harris administration remains steadfast in addressing labor rights violations under the U.S.-Mexico-Canada Agreement and supporting robust freedom of association and collective bargaining rights across Mexico,” said Deputy Undersecretary for International Labor Affairs Thea Lee. “We commend the government of Mexico for committing to take action at Goodyear and in overseeing the just application of the sector-wide agreement to the benefit of workers.”
The Mexican government is expected to complete its investigation into the denim manufacturer this month.
