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New USMCA Labor Obligations Present Risks for Covered Employers

Wednesday, April 28, 2021 In effect since July 1, 2020, the United-States-Mexico-Canada Agreement (“USMCA”) replaced the North American Free Trade Agreement (“NAFTA”).  Although the worldwide COVID-19 pandemic largely overshadowed the effective date of this new international agreement, its new labor provisions should not go overlooked.  While the USMCA retains most of the NAFTA commitments, it revamped the old agreement in key areas including labor.  Unlike NAFTA that included some labor commitments in a side agreement, the USMCA provides labor standards in the core text of the agreement (Chapter 23, Labor), making them fully enforceable. The commitments on labor are not only relevant to manufacturers located in one or more of the USMCA countries but also companies that rely on these goods as inputs into their supply chains.  This article provides a broad overview of the labor standards contained in Chapter 23 of the USMCA with a particular emphasis on the

New Labor Obligations Contained In USMCA Present Risks for Covered Employers | Sheppard Mullin Richter & Hampton LLP

To embed, copy and paste the code into your website or blog: In effect since July 1, 2020, the United-States-Mexico-Canada Agreement (“USMCA”) replaced the North American Free Trade Agreement (“NAFTA”). Although the worldwide COVID-19 pandemic largely overshadowed the effective date of this new international agreement, its new labor provisions should not go overlooked. While the USMCA retains most of the NAFTA commitments, it revamped the old agreement in key areas including labor. Unlike NAFTA that included some labor commitments in a side agreement, the USMCA provides labor standards in the core text of the agreement (Chapter 23, Labor), making them fully enforceable. The commitments on labor are not only relevant to manufacturers located in one or more of the USMCA countries, but also companies that rely on these goods as inputs into their supply chains. This article provides a broad overview of the labor standards contained in Chapter 23 of the USMCA with a particul

Americas: United Steelworkers union (USW) states that many of the changes promised to improve the lives of workers remain to be implemented when it comes to the Mexican labour reform

Business & Human Rights Resource Centre Featured pages Featured pages Featured pages Featured pages Article Americas: United Steelworkers Union (USW) states that ‘many of the changes promised to improve the lives of workers remain to be implemented’ when it comes to the Mexican labour reform “USW Commends Independent Mexico Labor Expert Board, Echoes Call to Strengthen Mexican Labor Rights”, 15 December 2020 .The board, an advisory group established by Congress to monitor labor rights in Mexico under the U.S.-Mexico-Canada trade agreement (USMCA), released an interim report on Dec. 15 assessing the current state of Mexican labor reform and endorsing further U.S. support.The report found that many of the changes promised to improve the lives of workers, in terms of union democracy, freedom of association and collective bargaining, remain to be implemented. The board also determined that Mexico s system of employer-controlled protection unions rema

Pressures on U S Manufacturers with Mexico Operations

Wednesday, January 20, 2021 U.S. manufacturers that maintain operations or supply chains in Mexico will continue to face challenges as Mexico accelerates implementation of its new labor law and the United States increases pressure on Mexico for faster labor reforms through unprecedented enforcement tools available under the United States-Mexico-Canada Agreement (USMCA). Manufacturers are the principal focus of this new initiative. Mexico Labor Law Reforms Mexico  enacted sweeping labor law reforms on May 1, 2019, that overhauled the country’s labor laws to encourage meaningful unionization similar to what the United States has maintained for nearly 80 years. Mexico President Andrés Manuel López Obrador campaigned for labor law reform, and the reforms are an expressed (and critical) term in the USMCA. These reforms are designed to eliminate Mexican employers’ reliance on “protection contracts,” which are agreements between an employer and employer-sponsored u

Pressures On U S Manufacturers With Mexico Operations, Supply Chains To Comply With New Labor Laws | Jackson Lewis P C

To embed, copy and paste the code into your website or blog: U.S. manufacturers that maintain operations or supply chains in Mexico will continue to face challenges as Mexico accelerates implementation of its new labor law and the United States increases pressure on Mexico for faster labor reforms through unprecedented enforcement tools available under the United States-Mexico-Canada Agreement (USMCA). Manufacturers are the principal focus of this new initiative. Mexico Labor Law Reforms Mexico enacted sweeping labor law reforms on May 1, 2019, that overhauled the country’s labor laws to encourage meaningful unionization similar to what the United States has maintained for nearly 80 years. Mexico President Andrés Manuel López Obrador campaigned for labor law reform, and the reforms are an expressed (and critical) term in the USMCA. These reforms are designed to eliminate Mexican employers’ reliance on “protection contracts,” which are agreements between an employer and

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