USTR Intervenes in Union-Busting Complaints Against Mexican Denim Factory

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The U.S. Trade Representative (USTR) has intervened in a worker rights complaint from Mexican garment workers who allege that their employer, a denim manufacturer, is engaging in union-busting activities.

Ambassador Katherine Tai this week announced that the U.S. has asked Mexico to look into claims from workers at an Industrias del Interior (INISA) garment facility in the state of Aguascalientes, who say that they are being denied the right to freedom of association and collective bargaining. The USTR and the Secretary of Labor, who co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC), received a Rapid Response Labor Mechanism (RRM) petition from a Mexican labor organization and a union representing workers at the factory on May 12, asking for intervention in resolving the issue.

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This marks the 10th time that a RRM has been formally invoked by the U.S. under the U.S.-Mexico-Canada (USMA) trade agreement, and the first time the U.S. has intervened in a complaint from the garment industry. The ILC found that there was “sufficient, credible evidence” that the denim manufacturer interfered with the union’s internal affairs, and attempted to coerce workers to accept the terms of its revisions to a collective bargaining agreement.

Now, ILC is asking the Mexican government to review those findings. The country has until the end of next week to agree to conduct the review, and 45 days to complete it.

“This announcement demonstrates again the Biden-Harris Administration’s commitment to using the Rapid Response Labor Mechanism to safeguard the rights of workers and the promises enshrined in the USMCA,” Tai said. “Today’s action highlights the United States’ focus in ensuring workers in all sectors have freedom of association and collective bargaining rights.”

“As in previous matters, we look forward to working closely with the Government of Mexico to address the issues present in this case,” she added.

“Employer interference in union internal affairs and coercion of workers to sidestep newly elected union leadership is unacceptable,” said Deputy Undersecretary for International Affairs Thea Lee. “The Mexican government has indicated its support for full implementation of the labor reform. Working together, we can address the issues in this case and protect the rights of workers.”

As a part of the review request, Tai has directed the Secretary of the Treasury to suspend the final settlement of customs accounts on entries into the U.S. from the INISA denim factory.

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