October 26, 2023: USTR announced that US had asked Mexico to review whether workers at Tecnología Modificada S.A. de C.V. in Nuevo Laredo (subsidiary of Caterpillar Inc.) are being denied the right to freedom of association and collective bargaining. This plant refurbishes electronic mechanical parts used in Caterpillar tractors, earth movers and other heavy equipment. Caterpillar statement: “Caterpillar upholds the principles of good faith bargaining and workers' rights. We are actively engaged with the United States and Mexican governments to ensure swift resolution and our continued compliance with country laws wherever we operate.”
US request responded to Sept 25, 2023 petition by union Sindicato Nacional Independiente de Trabajadores de Industrias y Servicios “Movimiento 20/32” (SNITIS), alleging that the plant dismissed an employee in retaliation for union organizing activity, and in response to SNITIS-led strike that started Sept. 22, had offered to pay non-striking workers who stay home, but not strikers. Links: US request; USTR press release; US Labor Department press release; USTR request to Treasury Department to suspend liquidation of entries from this plant; Reuters report including Caterpillar statement; El Universal
November 7, 2023: Ministry of Economy announced acceptance of the request for review.
December 22: US and Mexico announced successful resolution of the Rapid Response Mechanism review at Tecnología Modificada. USTR notified Treasury Department to resume liquidation of entries from that plant. Actions by plant management and the Mexican government included: offer of reinstatement to two unlawfully dismissed workers; company issuance of written neutrality statement committing to respect freedom of association and collective bargaining rights; personnel guidelines to comply with neutrality statement and worker rights at the plant; zero-tolerance policy for violations of neutrality statement and guidelines; training for all employees currently working, on freedom of association and collective bargaining rights and responsibilities. Links: USTR press release; Ministry of Economy/Ministry of Labor press release; USTR letter to Treasury.