VU Manufacturing is facing allegations of violating workers’ rights at its facility in Coahuila, Mexico. The workers, who are represented by the La Liga labor union, allege that the company is refusing to bargain in good faith and that several members of the union have been threatened. This is not the first time VU Manufacturing has faced similar grievances. In June of last year, a complaint was filed under the United States-Mexico-Canada Agreement (USMCA) Rapid Response Labor Mechanism (RRM). After an investigation in which both the United States and Mexico agreed that the workers’ rights were violated, the matter was considered resolved.
According to the U.S. Chamber of Commerce, because this is the company’s second complaint, VU Manufacturing could be facing “suspension of preferential tariff treatment, penalties on the goods or services provided by the facility, and even the denial of entry of goods in significant cases.”