Trump Makes First Use of the Rapid Response Labor Mechanism under the USMCA

Last week, the Trump administration asked Mexico to investigate allegations of workers' rights violations at a Mexico City auto parts plant operated by the U.S.-based company, Aludyne Automotive. This action marks the first use of the Rapid Response Labor Mechanism (RRLM) under the U.S.-Mexico-Canada Agreement (USMCA) during Trump's second term. 

HR Policy Global’s Take: U.S. Trade Representative Jamieson Greer, a participant in the original USMCA negotiations, made the request based on a petition from a Mexican union. This move highlighted the continuous use of the RRLM, even though the Trump administration held a different stance on unions from its predecessor. 

For the context: Rapid-response mechanism allows the U.S. to sanction individual facilities in Mexico for violating workers’ rights, which were secured under the 2019 labor reform that Mexico implemented under the USMCA. 

The tool was used 31 times under the Biden administration. However, only two cases advanced to the panel stage. Most cases resulted in resolutions at the facilities, including providing backpay, reinstating wrongly fired workers, and ensuring fair union elections. Labor advocates praise the tool as a significant improvement over previous enforcement tools in trade agreements, which had largely been ineffective. 

By the number: The auto industry received the most complaints, with 17 out of 31. Manufacturing followed with four complaints, while mining received three. Services had two complaints, and steel, food, and textiles got the rest.  

Mexican union on working hours: As Mexican workers will continue to leverage RRLM, they also push to achieve their agenda on working hours while Congress works on passing the law. The Mexican Workers' Union at 3M successfully negotiated a 13.8% increase in their collective agreement, removing one shift to prioritize weekends off. Panasonic has reduced hours to 45 per week, and Tridonex is working towards a 42-hour week, with a goal of reaching 40 hours by 2026. 

Next steps: Global employers operating in Mexico must remain vigilant with the RRLM, especially with the government change and increased union activities.