United States and Mexico Announce Course of Remediation at Volkswagen de México Facility

WASHINGTON - The United States and Mexico today announced a course of remediation at the Volkswagen de México, S.A. de C.V. facility in Cuautlancingo, Puebla. The facility is the largest automobile manufacturing plant in Mexico and among Volkswagen Group's largest plants globally. The United States and Mexico have successfully resolved twenty cases under the United States-Mexico-Canada Agreement (USMCA)'s Rapid Response Labor Mechanism (RRM), and this announcement marks the eighth time the United States and Mexico have agreed on a formal course of remediation under the RRM. The remediation plan will establish a holistic approach to ensuring workers can freely exercise their right to freedom of association and collective bargaining.

"This course of remediation requires the reinstatement of workers who, by turning to the RRM for remedy, have paved the way for stronger protections of freedom of association and collective bargaining rights for thousands of workers at the facility," saidAmbassador Katherine Tai. "We commend the Government of Mexico and Volkswagen de México for taking swift action to reinforce workers' rights, and we look forward to continued collaboration with Mexico during the plan's implementation."

"Respect for workers' rights to freedom of association and collective bargaining is at the heart of U.S.-Mexico trade under the U.S.-Mexico-Canada Agreement, and the agreement's Rapid Response Mechanism is vital to protecting these rights, especially in the auto industry," said Deputy Undersecretary for International Affairs Thea Lee. "We applaud the parties for reaching this agreement, and we recognize the continued strong collaboration with the government of Mexico in fostering a fair work environment for all."

The course of remediation details measures aiming to ensure freedom of association and collective bargaining rights are protected at the facility.

Under the course of remediation, the Government of Mexico will ensure that Volkswagen de México:<_o3a_p>

• Reinstates and provides full backpay and benefits to eight workers;<_o3a_p>
• Pays full severance to one worker who elected severance over reinstatement;<_o3a_p>
• Implements its neutrality statement and company guidelines on freedom of association and collective bargaining, including a zero-tolerance policy for violations; and <_o3a_p>
• Maintains copies of the neutrality statement, company guidelines, related training materials, and collective bargaining agreement, and information about how workers can file complaints with the company or Government of Mexico related to violations of their rights on a company app that is accessible to workers.<_o3a_p>

Under the course of remediation, the Government of Mexico will:<_o3a_p>

• Monitor the facility related to the obligations of this course of remediation and compliance with Mexican laws related to freedom of association and collective bargaining; and<_o3a_p>
• Maintain a direct email address and telephone line for workers to anonymously report any potential acts of unlawful interference or other violations of workers' freedom of association and collective bargaining rights.<_o3a_p>

Other actions already taken by the company and Government of Mexico to address the matter include: <_o3a_p>

• Volkswagen de México posting and disseminating its neutrality statement and company guidelines on freedom of association and collective bargaining;<_o3a_p>
• Volkswagen de México providing training to company personnel on its neutrality statement and guidelines;<_o3a_p>
• Volkswagen de México publicizing its anonymous and confidential telephone line or direct email address through which workers can report violations of their rights and breaches of company policies, as well as information on how workers can file complaints with the Government of Mexico related to violations of their rights; and<_o3a_p>
• The Government of Mexico conducting in-person workers' rights training for company personnel and posting and distributing informational material at the facility regarding freedom of association and collective bargaining.<_o3a_p>

The United States and Mexico agreed to establish a deadline of August 9, 2024 to complete the course of remediation.

Background

The United States has formally invoked the RRM twenty-five times. The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On April 25, 2024, the ILC received an RRM petition from a group of former Volkswagen de México workers. The petition alleged Volkswagen de México dismissed these workers in retaliation for union activity they conducted while serving as union representatives. The ILC reviews RRM petitions that it receives and the accompanying information, within 30 days.

The ILC determined that there was sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms. As a result, on May 28, 2024, the United States submitted a request to the Government of Mexico that it conduct its own review of all actions taken by the company to intervene in workers' union activities and the affairs of the incumbent union, as well as all actions taken by the union that discriminate among workers based on their union activities. Mexico agreed to conduct a review. Following Mexico's investigation, the United States and Mexico agreed on a course of remediation.

Read the full course of remediation here.

Read an unofficial courtesy Spanish translation of the full course of remediation here.
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