US-Mexico RRM (1): Tridonex

See also US Department of Labor webpage on Tridonex proceeding.

  • May 10, 2021: AFL-CIO, Service Employees International Union, Public Citizen Global Trade Watch, and Sindicato National Independiente de Trabajadores de Industrias y Servicios “Movimiento 20/32” announce filing of first complaint under USMCA Rapid Response Mechanism Interim Procedural Guidelines, requesting establishment of panel to investigate denial of labor rights at Tridonex S de RL de CV auto parts plants in Matamoros, Tamaulipas, Mexico.

  • June 9, 2021: After review of May 10 complaint by interagency committee, USTR announces a request by US to Mexico to review whether workers at the Tridonex plant are being denied rights of free association and collective bargaining.

  • June 19, 2021: Mexico’s Ministries of Economy and Labor state that they have received US request regarding Tridonex plant and will review the case.

  • August 10, 2021: USTR and Mexican auto parts firm Tridonex announce agreement that Tridonex will provide severance, back pay and a commitment to neutrality in future union elections. Announcement also notes that the Government of Mexico has agreed to help facilitate workers’ rights training for Tridonex employees, monitor any union representation election at the facility, and investigate any claims of workers’ rights violations reported by employees at the plant. USTR Fact Sheet on the agreement here; Tridonex commitments/action plan here.

  • August 10, 2021: Joint Communiqué by Mexico’s Ministries of Economy and Labor notes the USTR announcement, and states that Mexico’s investigation of the petition concerning Tridonex had shown that the facts alleged took place prior to the entry into force of USMCA, therefore there was no denial of rights for workers at the plant within the meaning of USMCA.

  • August 11: At press conference, Mexican Secretary of Economy Tatiana Clouthier emphasizes that acts or facts which took place prior to the July 1, 2020 entry into force of USMCA are not subject to the treaty, and Mexico will not accept labor disputes under the Rapid Response Mechanism concerning facts prior to that date. Clouthier notes that the USTR agreement was reached on US territory, between USTR and Tridonex’s US parent company Cardone Industries, concerning actions to be taken by Tridonex.

  • 28 February 2022: Workers at Tridonex auto parts plant in Matamoros, Mexico choose the independent union SNITIS over the existing CTM-affiliate CITPME union, by 84% (1126 to 176). Mexican government announcement of results; USTR/US Labor Department statement; report by El Economista; by Reuters. While the CTM obtained an injunction (amparo) from a Mexican court protecting its representation of the Tridonex workers, reportedly the Fourth Collegiate Court denied this injunction on August 11, confirming recognition of SNITIS.

Canada-Mexico RRM: Fraenkische Industrial Pipes México

Fraenkische Industrial Pipes México S.A. de C.V.

  • March 11, 2023: Canada’s largest private sector union Unifor, and Mexican autoworker union Sindicato Independiente Nacional De Trabajadores Y Trabajadoras De La Industria Automotriz (SINTTIA), submit complaint to Canada NAO concerning “systematic and continual denial of rights to freedom of association and collective bargaining” by Fraenkische Industrial Pipes México S.A. De C.V. at its factory in Silao.

  • March 13: Canada’s National Administrative Office (NAO) notifies submitters that petition has been accepted for review. Links: Unifor-SINTTIA press release; NAO webpage

  • May 24: Canadian government reported to be still considering this petition; SINTTIA said to be working on a recount in recent election.

  • June 14: Fraenkische workers announce that they have been working with the company and the Canadian government, and a vote to elect a new union will be held on June 26.

Final report (from Canada NAO webpage):

  • During the review process, NAO officials undertook on-site visits, interviews, and engaged in discussions with all parties concerned in the complaint. However, given the company’s willingness to address the demands put forward in the complaint by the submitters, the NAO facilitated a dialogue between the concerned parties in order to reach an agreement.

  • Discussions with the parties were effective and led to concrete and positive outcomes, that is:

    • the company issued a public statement in which it committed to respect the effective exercise of freedom of association and collective bargaining rights of Fraenkische workers

    • the company reinstated three workers who supported SINTTIA with back pay as part of the submitters’ proposal for remediation

    • the union election vote by Fraenkische workers that took place on June 26, 2023 was conducted in a fair manner and its result was confirmed by the federal labour judge on July 11, 2023. SINTTIA won the vote and is now the majority representative union for Fraenkische workers.

  • In light of these developments, the NAO considers that the allegations were addressed and has closed the case against Fraenkische.

Analyses on USMCA RRM and labor chapter

  • Desiree LeClercq:

    • A Worker-Centered Trade Policy, 61 Columbia J. of Transnational Law 733 (2023)

    • May 16 2021 blogpost on recent RRM activity, on limited scope of Labor Rapid Response Mechanism with respect to labor rights in US

    • September 4, 2023 Labor Day blogpost: argues that Labor Rapid Response Mechanism excludes protections for vulnerable workers in US trade sectors through footnote in USMCA Annex 31-A; urges action to delete the footnote to make USMCA more equitable; also urges that Mexican government invoke RRM to protest alleged freedom of association and collective bargaining violations in US airline companies.

  • Alvaro Santos: “Reimagining Trade Agreements for Workers: Lessons from the USMCA” AJIL Unbound, Dec. 9, 2019