Employer Interference is the Top Reason for USMCA Labor Complaints

A recent report indicates that employer interference is a leading cause of labor complaints in Mexico under the USMCA trade agreement. Since the agreement’s inception, 64.2% of complaints cite company actions as barriers to freedom of association.

HR Policy Global’s Take: US-based companies must understand Mexican labor law and recognize how it differs from US law, especially when it comes to employees participating in union activities. Join us at our upcoming Mexico labor and employment workshop to learn more. 

• Employer Interference: This is the leading cause of labor complaints, 64.2% of complaints cite company actions as barriers to freedom of association.  
  
  
• Anti-union Discrimination: This is the second most cited reason, with 15 out of 28 Rapid Response Labor Mechanism cases involving discrimination against workers promoting new organizational forms.
  
  
• Dismissal for Union Activity: This ranks third, in regard to workers’ termination for their involvement in union activities.
  
  
• Threats and Retaliation: This is the fourth most reported issue, where workers encounter threats and retaliatory actions for their union-related activities.

Remediation Measures:

• Letter of Neutrality: So far, 22 companies have signed a letter of neutrality and are required to share it with their employees. 
  
  
• Compensation Measures: Companies are obligated to provide training, pay back wages, and reinstate workers who were unjustly dismissed due to labor rights violations under the USMCA.
  
  
• Other Rapid Response Labor Mechanism Actions include imposing liquidation pause on facilities where a complaint was filed, conducting investigations by US Labor Attache, and convening labor panels. One such panel related to the San Martín mine has been resolved, and another concerning the Atento company is under review.

Current Statistics: 28 cases were filed, with 4 still active, 23 closed, and 1 panel is being activated.