The issues flagged by the United States, following a petition from the AFL-CIO labour organisation and a Mexican union known as The Miners, are being addressed in Mexico’s court system with a final outcome expected soon, Mexican officials said. — Reuters
MEXICO CITY: A labour dispute at Grupo Mexico’s San Martin mine in Mexico’s Zacatecas state, where the United States raised concerns over alleged worker rights abuses, does not meet the criteria for review under a regional trade deal, Mexico says.
Mexico’s rejection of the US complaint filed in June is one of the few times since the United States-Mexico-Canada Agreement (USMCA) went into effect in 2020 that it has deemed a case ineligible for review under the pact, which has tougher rules than its Nafta predecessor.
The issues flagged by the United States, following a petition from the AFL-CIO labour organisation and a Mexican union known as The Miners, are being addressed in Mexico’s court system with a final outcome expected soon, Mexican officials said.
The Miners urged the Mexican government to reconsider, saying the rejection favoured Grupo Mexico’s version of events and that the US scrutiny had helped protect worker rights while legal processes unfolded in Mexican courts.
The US Trade Representative’s office and Grupo Mexico declined to comment.
The US government on June 16 had asked Mexico to review the matter, citing arguments from The Miners that Grupo Mexico’s operations at San Martin violate a strike begun in 2007, and that the company bargained with employees who did not have the right to formally represent the workforce.
Grupo Mexico countered that its San Martin mine, which contains lead, copper, zinc and silver, legally resumed operations with workers’ approval in 2018.
Mexican officials said both these events pre-date the USMCA, putting them beyond the scope of the trade deal’s “Rapid Response Mechanism,” which can be used to sanction companies that fail to swiftly resolve labour complaints.
The United States has invoked the mechanism 10 other times, including at General Motors and Goodyear, and its use is closely watched by companies operating in Mexico.
A Mexican court ruled in favour of The Miners in June, ordering Grupo Mexico to pay back wages and benefits, the Mexican officials noted. — Reuters
