The Department of Labor and the Office of the Trade Representative today announced the successful resolution of a U.S.-Mexico-Canada Agreement Rapid Response Labor Mechanism matter, following allegations of labor rights violations at the Volkswagen assembly plant in Puebla, Mexico.
After the U.S. requested the Mexican government review the matter on May 28, 2024, the U.S. and Mexican governments negotiated a course of remediation which led Volkswagen to reinstate eight unjustly terminated workers to their previous positions and award them full back pay. A ninth worker received full severance.
Volkswagen also established guidelines to prevent future employer interference in union affairs and safeguard workers’ ability to exercise their right of association freely. The Mexican government provided training and did periodic inspections at the facility to monitor the course of remediation and the auto company’s compliance with Mexican law that protects workers’ freedom of association and collective bargaining rights.
“The U.S. and Mexican governments have collaborated to assure workers’ fundamental rights to organize and bargain collectively,” said Deputy Undersecretary for International Labor Affairs Thea Lee. “Volkswagen’s efforts under this course of remediation underscore its commitment to compliance with Mexican law and a just working environment.”
“Today’s resolution marks the twenty-first case the United States and Mexico have successfully resolved under the RRM. Through this case, workers at Mexico’s largest automobile manufacturing plant have been reassured they can exercise their freedom of association and collective bargaining rights freely,” said Ambassador Katherine Tai. “We commend the Government of Mexico and Volkswagen de México’s efforts to strengthen labor protections at the facility.”
The largest automobile assembly plant in Mexico, Volkswagen’s Puebla plant employs about 6,100 assembly line workers, 5,000 supervisory or trusted employees, and thousands of parts-assembly workers and makes 2,300 vehicles per day. In 2023, more than 300,000 of those vehicles were exports with 67 percent for sale in the U.S. market.
The USMCA Rapid Response Labor Mechanism allows the U.S. to take enforcement action based on the labor situation at an individual factory in Mexico if such facility fails to comply with domestic freedom of association and collective bargaining laws.