United States, Mexico Announce Successful Resolution of Rapid Response Labor Mechanism Matter at Akwel Juárez México Facility

WASHINGTON - The United States and Mexico today announced the successful resolution of the United States-Mexico-Canada Agreement (USMCA) facility-specific Rapid Response Labor Mechanism (RRM) matter regarding theAkwel Juárez México, S.A. de C.V. (Akwel or the company) facility located in Ciudad Juárez, Chihuahua, Mexico. The United States and Mexico agreed on a course of remediation to address labor violations occurring at the facility, including employer interference in union activity and retaliatory dismissals of workers. That plan has now been implemented, and the denial of rights concerns raised in our request for review have been remediated. As a result, the United States Trade Representative has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility.

The measure marks genuine progress in safeguarding U.S. workers' ability to compete internationally, requiring Mexican producers to follow Mexican law and the terms of the USMCA. Actions taken during the course of remediation allowed the Akwel workers to elect a representative union and negotiate a collective bargaining agreement with improvements to wages and working conditions at the facility. This case represents another victory for the Trump Administration, whose America First policy prioritizes American workers by preventing foreign auto parts manufacturers from weakening worker protections to obtain an unfair trade advantage.

The Department of Labor's Bureau of International Labor Affairs and the Office of the U.S. Trade Representative facilitated a resolution with the Government of Mexico (Mexico) to remediate workers' claims at Akwel.

Actions taken by the facility to address the matter include:

• Reinstating three workers with full backpay and benefits and paying full severance to six workers, based on their respective preferences;
• Restructuring human resources and labor relations management, and taking appropriate disciplinary action against staff who violated workers' freedom of association and collective bargaining rights;
• Implementing and training all company personnel on its neutrality statement and guidelines related to freedom of association and collective bargaining, including a zero-tolerance policy for violations, and committing to retraining annually;
• Informing workers about the denial of rights at the facility by conducting meetings and posting notices at the facility to acknowledge Akwel's unlawful and interfering practices and affirm the company's intention to respect workers' rights in the future;
• Installing and publicizing a complaint mechanism through which workers can report violations of their rights and breaches of company policies anonymously and confidentially; and
• Maintaining on the company website and in any internal communications platform the neutrality statement and guidelines, collective bargaining agreement, training materials, and information about complaint mechanisms maintained by the company and Mexico, such that the information is easily accessible to workers.

Actions taken by Mexico to address the matter include:

• Monitoring the facility with regard to the obligations of the course of remediation and compliance with Mexican laws related to freedom of association and collective bargaining;
• Conducting in-person training that is structured to ensure all workers understand their right to freedom of association and collective bargaining and how to exercise it, including by informing workers of the denial of rights at the facility and educating workers on the conciliation process available to any dismissed worker;
• Conducting separate workers' rights training for supervisors, human resources and labor relations personnel, and other high-level and "trusted" officials;
• Maintaining a direct email address, reporting platform, and telephone line for workers to anonymously report any potential acts of unlawful interference or other violations of freedom of association and collective bargaining rights, and timely investigate any allegations; and
• Imposing sanctions in accordance with Mexican law, including financial penalties, on Akwel for violating Mexican laws related to freedom of association and collective bargaining.

Background

The Secretary of Labor and the United States Trade Representative co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On October 24, 2024, the ILC received an RRM petition from Sindicato Nacional de Trabajadores y Empleados Especializados, Conexos y Similares de la República Mexicana (SINATAM), a Mexican labor union, along with ten workers as signatories. The petition alleged Akwel had violated workers' right to collective bargaining and freedom of association by refusing to negotiate a collective bargaining agreement with the petitioner union, dismissing workers based on their union affiliation, and threatening and harassing workers to disincentivize their union activity. 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 November 22, 2024, the United States submitted a request that Mexico review the matter. Mexico agreed to conduct a review and, on January 6, 2025, concluded a denial of the rights had occurred at the facility. Subsequently, the United States and Mexico agreed on a course of remediation. The end date of the course of remediation was January 31, 2026. The United States closely monitored compliance with the course of remediation.

Read the full course of remediation.

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

Read the letter to the Secretary of the Treasury.

Learn more about the department's work to make global competition fair for American workers.