US secures labor victory in Alimentos Grole case in Mexico, advancing fair competition for American workers

News Release

US secures labor victory in Alimentos Grole case in Mexico, advancing fair competition for American workers

WASHINGTON - The United States today announced the successful resolution of the United States-Mexico-Canada Agreement (USMCA) facility-specific Rapid Response Labor Mechanism (RRM) matter regarding the Alimentos Grole, S.A. de C.V. (Alimentos Grole or the company) facility in Ciudad Obregón, Sonora, Mexico, where workers alleged they were previously denied their freedom of association and collective bargaining rights.

The resolution is another win for the Trump Administration, whose America First approach ensures our trade partners do not undermine worker protections to gain an unfair trade advantage or attract investment.

The United States and Mexico agreed on a course of remediation to address labor violations occurring at the facility, including the formation of a company-aligned internal labor committee 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 Office of the United States Trade Representative (USTR) has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility.

The U.S. Department of Labor's Bureau of International Labor Affairs, USTR, and the Mexican government facilitated a resolution with Alimentos Grole to remediate workers' claims.

Actions taken by the facility to address the matter include:

• Reinstating nine unlawfully dismissed workers with full back pay and benefits and paying full severance to two workers, based on their respective preferences;
• Disbanding the company-aligned internal labor committee and ceasing and desisting from utilizing it or encouraging or supporting the formation of any such committee in the future;
• Developing a facility access protocol that allows the Sindicato de Trabajadores de la Industria Alimentaria, Mantenimiento Industrial, Similares y Conexos del Estado de Sonora (SITIES) to exercise its rights and perform its duties;
• 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 as needed;
• Informing workers about the denial of rights at the facility by conducting meetings and posting notices at the facility to acknowledge Alimentos Grole'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 Government of Mexico, such that the information is easily accessible to workers.

Actions taken by the Government of 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; and
• 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.

The RRM, developed under the first Trump administration, is an unprecedented trade tool that works to level the playing field for American workers and businesses by addressing weak labor law enforcement in Mexican workplaces that compete in trade with the United States.

Background

The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On July 29, 2025, the ILC received an RRM petition from a group of former and current Alimentos Grole workers affiliated with SITIES, a Mexican labor union. The petition alleged that Alimentos Grole had violated workers' rights by threatening and dismissing workers to discourage union activity and by forming and promoting a company-aligned internal union. 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 August 28, 2025, the United States submitted a request that Mexico review the matter. Mexico agreed to conduct a review and, on October 10, 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 United States closely monitored compliance with the course of remediation and has concluded the situation to have been remedied.

Read the full course of remediation here.

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

A copy of the letter to the Secretary of the Treasury can be found here.

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