The United States has filed a labor complaint against Mexico after the country refused to take action on alleged union-busting by a Mexican company. This complaint was filed under the USMCA free trade agreement, which aims to guarantee the right of workers to organize in Mexico. Historically, wages in Mexico have been low due to restrictions on union organizing, but recent efforts have been made to address this issue.
The case in question involves a call center company, Atento Servicios, where the Mexican Telephone Workers Union claimed that employees trying to organize a new union were threatened and fired. Mexican authorities admitted to abuses at the call center but claimed that the company had taken appropriate corrective measures. However, the USTR disagreed with this assessment, leading to the request for a dispute settlement panel to intervene and make a decision within six months.
The dispute resolution mechanisms established by the USMCA aim to address issues of union representation and labor rights in Mexico. The fight for more democratic unions in workplaces has been ongoing, with instances of old-guard unions negotiating contracts behind workers’ backs. The U.S. government hopes that these labor complaints will eventually lead to an increase in Mexican wages, bringing them closer to U.S. levels and curbing the outflow of manufacturing jobs from the United States.
Mexico has faced previous labor disputes under the USMCA, including a case involving the San Martín mine in Zacatecas. The mine has been embroiled in a long-standing conflict between two unions claiming to represent its workers. Mexico argued that the dispute should be resolved through Mexican courts, as it predates the USMCA, which only came into effect in 2020. The country has made changes to its labor laws to align with the agreement, including requiring secret-ballot votes on union contracts to prevent intimidation and manipulation by old-guard unions.
Despite efforts to improve labor conditions in Mexico, challenges remain in achieving wage parity with the United States. For example, a newly elected union at an auto plant in northern Mexico was able to negotiate a minimum wage increase to about $14 a day, but this is still significantly lower than what U.S. autoworkers earn in an hour. The U.S. government continues to monitor labor practices in Mexico and file complaints when necessary to ensure that workers’ rights are protected under the USMCA.
