The United States escalated its fight against union-busting tactics as Mexico rebuffed efforts to address labor infringements by a local enterprise. On Tuesday, the U.S. Trade Representatives Office announced the filing of a labor complaint after Mexico’s refusal to intervene in alleged union interference by a Mexican company.
The complaint, lodged under the US-Mexico-Canada Free Trade Agreement (USMCA), highlights the establishment of rapid-resolution mechanisms aimed at safeguarding union rights in Mexico. Decades of suppressed union activities have resulted in persistently low wages in the country.
Despite approximately 22 prior requests by the United States, Mexico had typically cooperated in pressuring companies to adhere to labor standards. However, in January, Mexico declined to act in a case involving a call center accused of intimidating or terminating union organizers.
This marks only the second time the United States has filed such a grievance, with Mexico’s recent refusals occurring within the past six months. In the latest incident, the Mexican Telephone Workers Union alleged misconduct by Atento Servicios, asserting threats and dismissals against employees advocating for a new union.
While Mexican authorities acknowledged abuses at the call center in Hidalgo, they contended that adequate corrective actions had been taken by the company. Disagreeing with this assessment, the USTR initiated the dispute settlement process.
The expert panel tasked with adjudicating the matter will have approximately six months to render a decision. The broader struggle aims to replace entrenched, pro-company unions with more democratic counterparts, combating the prevalence of “paper” contracts negotiated without worker input.
In another instance, the USTR’s prior dispute resolution request centered on the San Martín mine in Zacatecas, embroiled in a longstanding dispute between rival unions. Mexico insisted on domestic court resolution, citing the case’s pre-USMCA origins.
Reforms to Mexico’s labor laws between 2012 and 2017, partly driven by USMCA accession efforts, mandated secret-ballot votes on union contracts. However, historical practices of coercion and manipulation persist, hindering the emergence of independent unions.
The U.S. government envisions these labor challenges as potential drivers for wage convergence between Mexico and the United States, aiming to stem the outflow of manufacturing jobs. Yet, significant disparities persist, exemplified by wage differentials such as those observed in the auto industry.
