Dear Clients and Friends,
On December 10th, agreements modifying the T-MEC [United States–Mexico–Canada Agreement – USMCA] were signed.
In labor matters, the main points were the following:
Mexico signed separately with the USA and Canada the so-called “Rapid Response Labor Mechanism in Specific Facilities.” (The USA and Canada did not sign such an agreement between them). The mechanism will apply whenever a country considers, in good faith, that the workers of a specific company in another country have been denied the right of free association and collective negotiation.
If a country has any ground to believe that Denial of Rights is taking place in a company, it will first request that the other country conduct its own verification and, if the respondent party determines that there is a Denial of Rights, it will try to repair it within 45 days.
With the request made by a country, tariff penalties may be imposed on the products exported by the company that are allegedly violating the rights of free association and collective negotiation, until both parties agree that there is no longer a violation of rights or a panel of specialists determines there is no such violation anymore.
If the respondent country has determined that there is a Denial of Rights, the Parties shall consult each other, in good faith, for a period of 10 days and seek to arrange a course of reparation that will repair the violation without interrupting trades.
Within the scope of the solution mechanisms, it is established the creation of a Rapid Response Labor Panel with experts from both countries.
This panel may carry out verifications to the company that is accused of the violation and, observers of both Parties may accompany the panel in any on-site verification.
When violations have been detected, repairs may be imposed, which may include the suspension of the preferential tariff treatment for the goods manufactured in the company or the imposition of penalties on the goods manufactured in, or the services provided by the company.
With more than 40 years of experience in international labor issues and our national coverage, attorneys of the Labor Practice are at your service to design a prevention plan that includes training, compliance, monitoring and implementation, in accordance with your company’s characteristics.
Laboral y Seguridad Social / Labor and Social Security
Javier Canseco
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Rogelio Sánchez
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Perla Arreola
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Isaac Corral
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Ana María Becerra
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Roberto Alvarez-Malo
[email protected]
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