Department of Labor, Office of the Trade Representative reach agreement with Mexican government to protect labor rights at Puebla Volkswagen plant

News Release

Department of Labor, Office of the Trade Representative reach agreement with Mexican government to protect labor rights at Puebla Volkswagen plant

8th course of remediation under USMCA's Rapid Response Labor Mechanism

WASHINGTON - The U.S. and Mexican governments today announced an agreement on a course of remediation at the Volkswagen vehicle assembly plant in Puebla, Mexico, in response to a petition filed under the U.S.-Mexico-Canada Agreement's Rapid Response Labor Mechanism.

The course of remediation seeks to ensure workers' rights to freedom of association and collective bargaining are respected at the Volkswagen facility. On May 28, 2024, the U.S. requested the Mexican government review the matterand Mexico responded by conducting an investigation and then working with the company to take steps to ensure workers' rights are protected at the facility.

The Puebla plant will reinstate eight unjustly terminated workers with full back pay and the same titles, job duties, working conditions and benefits they had when fired. The company also established guidelines to prevent employer interference in union affairs and safeguard workers' rights to associate freely. In addition to providing training, the Mexican government will undertake periodic facility inspections to monitor implementation of the course of remediation and Volkswagen's compliance with Mexican law governing freedom of association and collective bargaining rights. The agreed-upon date for completion of the course of remediation is Aug. 9, 2024.

"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. The 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 environmentfor all."

"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," said Ambassador 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."

The USMCA Rapid Response Labor Mechanism allows the U.S. to take enforcement action based on the labor situation at an individual factory in Mexico if such facility fails to comply with domestic freedom of association and collective bargaining laws.

Volkswagen's Puebla plant is the largest automobile assembly plant in Mexico. It employs about 6,100 assembly line workers, 5,000 supervisory employees, and thousands of parts-assembly workers. In 2023, the plant exported more than 300,000 vehicles, 67 percent of them to the U.S. market.

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