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LATIN AMERICA ADVISOR

LATIN AMERICA ADVISOR

A daily publication Of the dialogue

July 1, 2024

How Well Is the USMCA Protecting Workers’ Rights?

Mexico last month agreed to investigate alleged labor law violations at a Volkswagen plant. A vehicle manufacturing facility in Mexico is pictured. // File Photo: Mexican Government.

Q

  • Mexico’s labor and economy ministries accepted a request on June 11 from the Office of the U.S. Trade Representative to investigate alleged violations of workers’ rights at a Volkswagen car manufacturing plant in Puebla. The request was made under the United States-Mexico-Canada Agreement, or USMCA, following a petition from workers alleging they were being denied the right to unionize. How well is the USMCA working with regard to labor rights? Are the United States and Mexico cooperating well on labor disputes and compliance with the labor standards of the USMCA? How well will Mexico’s incoming president, Claudia Sheinbaum, be able to work with the United States on labor issues?

A

Carlos Ferran Martínez Carrillo, managing partner, and Zaret Valencia Martínez, associate, at Ferran Martínez Abogados in Mexico City “The USMCA has proven effective in protecting labor rights in North America. The treaty’s Rapid Response Labor Mechanism has addressed 23 cases, benefiting nearly 30,000 workers and securing more than $5 million in retroactive payments and benefits, with 17 cases resolved through remediation plans. This indicates the mechanism’s success in resolving conflicts and improving working conditions. Cooperation between the United States and Mexico in resolving labor disputes has been effective. Both nations have shown a commitment to investigating and remedying labor rights violations, as demonstrated by the reviews of the Volkswagen plant in Puebla and the Goodyear case in San Luis Potosí. The precedent set by…”

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The Inter-American Dialogue publishes the Latin America Advisor every business day for a distinguished membership of informed corporate leaders, scholars, and government officials invested in Latin America’s development and future. The Advisor‘s highly regarded Q&A section covers questions submitted by subscribers themselves. Commentators regularly include heads of state, business leaders, diplomats, economists, analysts, and thought leaders from around the world. Many of the world’s largest and fastest-growing companies subscribe to the Advisor. To subscribe, click here. For terms and conditions, click here. For more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.
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