The Teksid Hierro de México plant, located in Frontera, Coahuila, was designated by the United States for Mexico to review an alleged denial of labor rights.

The USMCA Facility-Specific Rapid Response Labor Mechanism establishes an entirely new and streamlined approach to dispute resolution under which an ad hoc international dispute resolution panel can make a determination as to whether a specific facility is complying with local Mexican labor legislation.

The mechanism allows the United States or Canada to request, based on a good faith belief, the remedy of a specific “Denial of Rights” under Mexican labor law that occurs at a “Covered Facility” in Mexico.

Likewise, the rapid response mechanism will be applied in priority sectors, which were defined as those that produce manufactured goods, provide services or involve mining.

Mexico, through the Ministry of Economy, has 10 days to notify whether or not it will review the request.

«The Government of Mexico reiterates its commitment to the effective application of the provisions established in the T-MEC and in national legislation, thereby guaranteeing transparency and certainty for the workers of Mexico,» the Ministry of Economy said in a statement of press.

The rapid response mechanism will be applied in priority sectors, which were defined as those that produce manufactured goods, supply services or involve mining.

Teksid Hierro de México

For greater certainty, manufactured products include, among others, aerospace products and components, automobiles and auto parts, cosmetic products, industrial baked goods, steel and aluminum, glass, ceramics, plastic, forgings, and cement.

The language of the Labor Chapter designated the Department of Labor as the point of contact to address matters related to the agreement. The USMCA implementing legislation establishes an Intersecretarial Labor Monitoring and Enforcement Committee, to coordinate United States efforts with respect to the implementation and maintenance of USMCA labor obligations, monitor Mexico’s historic labor reforms, and make comply with the USMCA labor provision when necessary.

Among the Committee’s many responsibilities, it will receive and review submissions under the USMCA Labor Chapter and the Rapid Response Labor Mechanism.

Like Teksid Hierro de México, other plants have received labor complaints from the United States, including one owned by General Motors and another by Panasonic.