Mexico: Mexico and U.S. Close Volkswagen Labour Dispute Under Rapid Response Mechanism
Volkswagen of México was denounced under the Rapid Response Labour Mechanism by “Red de Mujeres Sindicalistas,” which accused the company of firing a group of workers for their union activity. After conducting the corresponding investigations, the U.S. Government filed the labour complaint alleging violations of the rights of association and collective bargaining.
On 12 July 2024, the Government of Mexico submitted to the United States the results of the investigation of Volkswagen de Mexico (VWM), in the context of the T-MEC Rapid Response Labour Mechanism. The investigation revealed that in the last four union elections, including the November 2023 election, no patterns of forced dismissals or resignations of union leaders of the Independent Volkswagen Workers Union (SITIAVW) were identified. Although no evidence of dismissals motivated by union status was found, irregularities in termination procedures were detected.
During the investigation, six dialogue and negotiation tables were held with the Federal Centre for Labour Conciliation and Registration, resulting in several agreements. The reinstatement of eight workers and the settlement of one more was determined. These agreements included the payment of back wages, benefits and compensation in accordance with the Federal Labour Law.
During the investigation of the case, the company, in collaboration with the Ministry of Labour and Social Welfare, implemented several corrective measures. VWM published a union neutrality charter and defined guidelines for personnel conduct. Extensive training on these guidelines and on freedom of association and collective bargaining rights in Mexico was provided to all management, directors, and workers involved in union elections.
In addition, the company facilitated STPS training on labour rights for all employees and expanded the diffusion of complaint mechanisms for reporting labour rights violations. Also, during the good faith consultations between Mexico and the United States, it was agreed that VWM would provide printed copies of the neutrality charter to new employees, including those who were reinstated, and maintain the availability of documents and training on its digital platform.
These actions led the Mexican and U.S. governments to agree to close the case, underscoring VWM’s commitment to respect labour rights and improve union practices.
However, the process also highlighted concerns about arbitrariness and potential abuse that may arise from the implementation of the Rapid Response Labour Mechanism.
While the T-MEC Rapid Response Labour Mechanism may offer an important avenue for improving labour conditions and ensuring the enforcement of rights, it is crucial that its implementation be transparent, fair and balanced to avoid arbitrariness and abuse. The effectiveness of this mechanism will depend largely on how these issues are handled and the willingness of all parties to work towards constructive and equitable solutions.
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