U.S.-Mexican Manufacturer Challenges: First USMCA Labor Complaint

Thursday, May 13, 2021
Unions in the United States and Mexico have taken a significant step under the United States-Mexico-Canada Agreement (USMCA) to interject the United States into labor disputes in Mexico by filing the first complaint under the USMCA’s rapid response mechanism against an auto parts supplier in Mexico.
This action, and significant support for greater union organization from the Biden Administration, will require manufacturers to adjust to the new reality of labor relations in Mexico.
Background
Under the USMCA, Mexico committed to implement labor reforms that would radically change Mexico’s labor laws and adopt a system similar to the National Labor Relations Act. Mexico subsequently overhauled its federal labor law in May 2019 and continues to implement the new laws.

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