WASHINGTON, USA – The United States has officially resolved a significant issue concerning the United States-Mexico-Canada Agreement (USMCA) related to the Volkswagen de México facility in Puebla, where employees previously reported a denial of their rights to form unions and engage in collective bargaining. In July 2024, the United States and Mexico established a comprehensive plan to safeguard workers’ rights at this facility, which has now been fully implemented. Consequently, the Office of the United States Trade Representative has instructed the Secretary of the Treasury to resume the processing of unliquidated entries of goods from the facility.
“Today’s outcome represents the twenty-first successful resolution under the Rapid Response Labor Mechanism, reaffirming that workers at Mexico’s largest automobile manufacturing site can now freely exercise their rights to association and collective bargaining,” a representative stated. “We acknowledge the efforts made by the Government of Mexico and Volkswagen de México in bolstering labor protections at the facility.”
“The collaboration between the U.S. and Mexican governments illustrates their commitment to ensuring workers’ fundamental rights to organize and engage in collective bargaining,” a government official remarked. “Volkswagen’s proactive measures demonstrate its dedication to adhering to Mexican laws and fostering a fair work environment.”
Key Actions Implemented by Volkswagen de México Include:
- Reinstatement of eight workers along with back pay and benefits;
- Full severance payment to one worker opting for severance;
- Implementation of a neutrality statement and guidelines on freedom of association and collective bargaining, including a zero-tolerance policy for violations;
- Employee training on these guidelines;
- Accessibility of relevant company documents and complaint procedures via an employee app;
- Promotion of an anonymous hotline and email for reporting rights violations and breaches of company policy.
Actions Taken by the Government of Mexico Include:
- Providing in-person training on workers’ rights and distributing informational materials at the facility;
- Monitoring adherence to remediation obligations and Mexican laws concerning workers’ rights;
- Establishing an anonymous reporting system for potential violations of workers’ rights.
Background
To date, the United States has invoked the Rapid Response Labor Mechanism 26 times. The Interagency Labor Committee for Monitoring and Enforcement, co-chaired by the United States Trade Representative and the Secretary of Labor, oversees these petitions. On April 25, 2024, the Committee received a petition from former workers at Volkswagen de México, who alleged wrongful dismissal linked to their union involvement. After reviewing the petition within 30 days, the Committee found substantial evidence warranting intervention. Following a government request, Mexico agreed to investigate and on July 25, 2024, a remediation plan was developed.
