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U.S. and Mexico sign deal to settle Industrias Tecnos labour dispute

The memorandum ends a USMCA rapid response case over ammunition plant labour rights and suspends the arbitration panel the United States had requested.

Photo: MEXICONOW

What happened

The United States and Mexico announced a memorandum of understanding on denial of rights concerns at the Industrias Tecnos facility in Cuernavaca, Morelos, where the company makes small arms ammunition. United States Trade Representative+1 The agreement sets out a plan to remedy violations of Mexican law at the plant and includes actions meant to protect freedom of association and collective bargaining rights going forward. United States Trade Representative Under its terms, Mexico will ensure the company verifies proper compensation for dismissed workers for any wages or benefits they did not receive as a result of unlawful dismissals. United States Trade Representative Mexico will also ensure the company implements and trains all personnel on a neutrality statement and guidelines on freedom of association and collective bargaining, with a zero-tolerance policy for violations and further retraining as needed, and installs and publicizes a worker complaint mechanism. United States Trade Representative The deal ends the dispute and suspends the establishment of the arbitration panel requested under the United States-Mexico-Canada Agreement. MEXICONOW

Around it

The case began in May 2024, when a U.S. interagency labour committee received a Rapid Response Labor Mechanism petition from the Metal Workers' Union. MEXICONOW Washington formally asked Mexico to review labour conditions at the plant in June 2024, but Mexico's labour authority found after an internal investigation no evidence of labour rights violations. MEXICONOW That finding led the U.S. government to formally request the establishment of an arbitration panel. MEXICONOW

Sources

  1. United States Trade RepresentativeUnited States and Mexico Announce Memorandum of Understanding at Industrias Tecnos Facility
  2. MEXICONOWMexico and U.S. Settle Tecnos Labor Dispute

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