DOL, trade representative, and Mexican government reach agreement to address labor violations at auto parts facility

Aug. 2, 2023
This agreement will outline a course of remediation concerning denials of freedom of association and collective bargaining rights at the plant.

The U.S. Department of Labor and U.S. Trade Representative have reached an agreement with the Mexican government concerning the Draxton auto parts facility in Irapuato, Guanajuato. In response to the United States’ request for review under the U.S.-Mexico-Canada Agreement’s Rapid Response Labor Mechanism, this agreement will outline a course of remediation concerning denials of freedom of association and collective bargaining rights at the plant. Draxton will be required to “establish guidelines that will prevent employer interference in union affairs and safeguard workers’ ability to freely exercise their right of association.” As part of the agreement, Mexico will implement training and inspections to ensure that the company is complying with all requirements. Draxton must also rehire a worker who was fired for engaging in union activity. The worker will be given an appropriate position with backpay and benefits.

In a recent quote, U.S. Trade Ambassador Katherine Tai said, “This course of remediation requires the reinstatement of a union official who was unlawfully dismissed for advocating for workers and it will help foster a productive workplace. The government of Mexico has been an outstanding partner and we look forward to continued collaboration in this case. The United States will closely monitor the plan’s implementation.”