US-Mexico RRM: (19) Fujikura Automotive Mexico

December 14, 2023: USTR announced that US had asked Mexico to review whether workers at Fujikura Automotive Mexico S. de R.L. de C.V. facility in Piedras Negras, Coahuila are being denied the right to freedom of association and collective bargaining, including through company blacklisting or otherwise retaliating against workers based on their previous union activity at their prior employer, Manufacturas VU. This was the thirteenth Rapid Response Mechanism request for review in 2023.

USTR requested that Treasury Department suspend liquidation of entries of goods from the Fujikura facility, which produces automotive wire harnesses and cables with about 5,000 employees across three plants. 

December 14 request stemmed from November 13 petition by Mexican worker rights organization Comité Fronterizo de Obreros, and US monitoring of effects of closure of the Manufacturas VU plant. Links: USTR press release; US Labor Department press release; US request for review; USTR letter to Treasury requesting suspension of liquidation.

December 22: Ministry of Economy announced acceptance of request for review.

January 30, 2024: Mexican Ministry of Economy/Ministry of Labor announced conclusion of investigation of labor conditions at Fujikura Automotive Mexico plant in Piedras Negras.

  • Investigation found insufficient evidence of actions constituting violation of Mexican labor law or denial of rights to freedom of association and collective bargaining. Nevertheless, to strengthen capacity of company, workers and union, Fujikura issued letter of commitment to union neutrality and guidelines for conduct by company personnel; strengthened dissemination of policy on discrimination, harassment, and equal opportunity; and trained workers on neutrality charter and conduct guidelines. Ministry of Labor trained workers on rights to freedom of association and collective bargaining in Mexico; trained company HR staff on rights to freedom of association and collective bargaining; and trained Fujikura union delegates from four plants in Coahuila on rights to freedom of association and collective bargaining. Mexican government therefore determined that in spite of lack of evidence of denial of rights to freedom of association and collective bargaining, Fujikura had shown its commitment to respect these rights.

  • January 30: Mexican Ministry of Economy/Ministry of Labor announced conclusion of investigation of labor conditions at Fujikura Automotive Mexico plant in Piedras Negras. Announcement stated that investigation found insufficient evidence of actions constituting violation of Mexican labor law or denial of rights to freedom of association and collective bargaining.

    • Nevertheless, to strengthen capacity of company, workers and union, Fujikura issued letter of commitment to union neutrality and guidelines for conduct by company personnel; strengthened dissemination of policy on discrimination, harassment, and equal opportunity; and trained workers on neutrality charter and conduct guidelines. Ministry of Labor trained workers on rights to freedom of association and collective bargaining in Mexico; trained company HR staff on rights to freedom of association and collective bargaining; and trained Fujikura union delegates from four plants in Coahuila on rights to freedom of association and collective bargaining. Mexican government therefore determined that in spite of lack of evidence of denial of rights to freedom of association and collective bargaining, Fujikura had shown its commitment to respect these rights.

    • US Embassy labor attaché commented that US government would need to review these results and that the review has not yet been concluded.

  • February 13: Mexico and US jointly announced successful closure of this investigation. Announcement by Ministry of Economy/Ministry of Labor and Social Welfare stated that after consultations between Mexico and the United States on the content of the investigation and the additional actions mentioned above, both governments agreed to close this case. Press release by USTR stated that “As a result of the above actions taken by the facility and the Government of Mexico to resolve the issue, the United States agrees that there is no ongoing denial of rights.” This is the first RRM case in which the US has agreed that even though it accepted an RRM petition, there was no denial of rights.

    USTR requested that Treasury Department resume liquidation of imports from the Fujikura plant at Piedras Negras.