United States Requests USMCA Rapid Response Labor Mechanism Dispute Settlement Panel at Minera Camino Rojo Mining Facility

WASHINGTON - United States Trade Representative Katherine Tai today announced that the United States has requested a Rapid Response Labor Mechanism (RRM) panel for the third time under the United-States Mexico-Canada Agreement (USMCA). The panel pertains to a labor dispute at a facility operated by Minera Camino Rojo, S.A. de C.V. in the Mazapil municipality in the state of Zacatecas.

Today's announcement follows a request for review that the United States sent to Mexico on August 29, 2024 asking Mexico to review whether workers at the facility, which specialized in the extraction and production of gold and silver, are being denied the right to freedom of association and collective bargaining.

In at least 22 cases to date, the United States and Mexico have been able to cooperate to successfully address labor rights violations at the Mexican facilities in question. An agreed resolution was not met in this matter, and the United States therefore has determined that it is appropriate to request a panel to verify the facility's compliance with Mexican labor laws.

"Today's panel request is another clear example of the Biden-Harris Administration's deep commitment to empowering workers and protecting their rights and dignity," said Ambassador Katherine Tai. "Every worker deserves the freedom to organize, to join a union, and to speak up for what's fair - without fear or intimidation. This is how we're making that promise a reality and leveling the playing field for workers here at home. We are committed to working collaboratively with the Government of Mexico to address these ongoing challenges and achieve a just resolution."

"This panel request reflects our commitment to using the U.S.-Mexico-Canada Agreement's trade tools to protect the right of workers to be represented by a union of their own choosing, in an environment free of violence or coercion," said Deputy Undersecretary for International Labor Affairs Thea Lee. "In realizing this commitment, we have worked collaboratively with the government of Mexico to address violence where workers sought real representation. The workers at the Camino Rojo mine deserve no less."

Background

The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On June 24, 2024 the ILC received a RRM petition from Sindicato Nacional de Trabajadores Mineros, Metalúrgicos, Siderúrgicos y Similares de la República Mexicana(Mineros) alleging a denial of rights at Minera Camino Rojo, S.A. de C.V. (the Facility), a mine owned by Canada-based Orla Mining, Ltd., which produces gold and silver in the Mazapil municipality in the state of Zacatecas. The petition alleged that the Camino Rojo mine interfered with union affairs at the facility by disparaging and undermining the strength of workers' support for the titular union, Mineros, and promoting the affiliation of workers to an external union, the Sindicato Nacional de Trabajadores de la Exploración, Explotación y Beneficio de Minas en la Republica Mexicana(a union affiliated to the Federación Nacional de Sindicatos Independientes, or FNSI). The ILC reviews RRM petitions that it receives, and the accompanying information, within 30 days.

The ILC, in response to the petition, determined that there was sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms. As a result, the United States Trade Representative submitted a request to Mexico that Mexico review whether workers at Camino Rojo were being denied the right to freedom of association and collective bargaining. Mexico had 10 days to decide whether to accept the U.S. request for review and, having agreed to do so, 45 days to complete the review.

At the conclusion of its 45-day review period, Mexico issued a report with a limited finding of a Denial of Rights at the Facility. The United States has consulted in good faith with Mexico but has been unable to agree upon a course of remediation. The United States considers the Denial of Rights to be ongoing, and therefore is requesting establishment of an RRM panel to review the situation.

A copy of the panel request can be found here.

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