The complaint was initially filed by the United States Trade Representative's office in May 2018 under the U.S.-Mexico-Canada Agreement (USMCA) provisions that seek to protect workers' rights. The complaint alleged that workers at the VU Manufacturing plant were denied the right to freely associate and form independent trade unions.
The new agreement acknowledges the company's commitment to improve workers' rights at the plant and provides a framework for the company to respect workers' freedom of association, collective bargaining, and participation in the collective decision-making process.
Under the agreement, the VU Manufacturing plant will establish an independent monitoring mechanism that will be overseen by the Mexican government and the U.S. Department of Labor. The mechanism will ensure that the company respects its workers' rights and that they are able to exercise them without fear of reprisal or retaliation.
The mechanism will include worker committees at the plant, which will be responsible for negotiating collective agreements as well as monitoring the implementation of the provisions of the agreement. Additionally, the company will provide training to its managers and supervisors on workers' rights and their obligations under Mexican labor law.
In a joint statement, the United States Trade Representative and the Mexican Secretary of Economy stated that the agreement "demonstrates the commitment of our governments to ensuring that workers in both of our countries have access to the rights and protections they are entitled to under the law."
The U.S. Trade Representative's office also noted that the agreement is the first enforcement action taken under the USMCA's labor chapter, which went into effect on July 1, 2020. Under the agreement, companies can face penalties for labor violations, including the loss of trade benefits.
VU Manufacturing is an "incomparable module and system solution integrator in the global aftermarket of auto parts." The company is a one-stop auto parts supplier, covering bearing and hub kits, shock absorbers, struts and kits, brake hydraulics related, steering related, suspension related, rubber parts, and continues to increase its product range.
The company's commitment to improving workers' rights at the VU Manufacturing plant aligns with its values of corporate social responsibility and sustainability. The company has previously implemented measures to reduce its environmental impact and improve the health and safety of its workers.
In conclusion, the U.S. and Mexico's agreement represents a significant step towards protecting workers' rights in the global supply chain of auto parts. The agreement demonstrates the importance of ensuring that workers are able to exercise their rights without fear of retaliation and sets a precedent for future enforcement actions under the USMCA's labor provisions.