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US Labor Department expresses disappointment over closure of VU Manufacturing plant in Mexico.

VU Manufacturing Plant Closure in Mexico Disappoints US Labor Department

US Labor Department Expresses Disappointment Over VU Manufacturing Plant Closure

The US Department of Labor has expressed disappointment over the closure of VU Manufacturing’s facility in Piedras Negras, Mexico. The department stated that the company failed to adhere to a labor rights remediation plan under the United States-Mexico-Canada Agreement (USMCA).

USMCA’s Stricter Rules for Protecting Workers’ Rights

VU Manufacturing, a small car upholstery factory, faced scrutiny for alleged violations under the USMCA, which has tougher rules compared to its predecessor, NAFTA, regarding the protection of workers’ right to form unions.

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First Rebuke from the US Following a USMCA Labor Probe

This marks the first time that the US has rebuked a company for failing to meet its commitments following a USMCA labor probe. In contrast, 13 other workplaces in Mexico have also come under review.

Commitments Made by VU Manufacturing

In March, both the US and Mexico agreed to oversee VU Manufacturing as it carried out a series of commitments. These commitments aimed to ensure the company remained neutral in union affairs and allowed workers to freely organize.

Company’s Failure to Adhere to Agreed Course of Action

The US Department of Labor, through Thea Lee, U.S. Deputy Undersecretary of Labor for International Affairs, expressed disappointment over VU Manufacturing’s decision to close its facility without adhering to the agreed course of remediation. The company undermined the majority union’s ability to represent workers in collective bargaining negotiations and their right to strike.

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Call for Prevention of Retaliation and Timely Payments

The Department of Labor urged Mexico to prevent retaliation against former VU workers as they seek new jobs. Additionally, they emphasized the importance of ensuring VU Manufacturing makes timely payments to dismissed workers.

Positive Impact of USMCA Complaints on Workers

While the US anticipated that not all employers would comply, Thea Lee highlighted that other USMCA complaints have largely benefited workers, demonstrating the positive impact of the agreement.

It is important for Mexico to take appropriate actions to address the concerns raised by the US Department of Labor, ensuring that workers’ rights are protected and respected. The closure of VU Manufacturing’s facility serves as a reminder of the importance of upholding labor rights under trade agreements.

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