US reaches deal with Tridonex in USMCA labor complaint

Tridonex, a Mexican auto parts company, on Tuesday agreed to ensure worker rights, pay severance and back wages to dismissed workers to settle an early labor rights complaint under the new North American trade deal.

The agreement which was announced by the U.S. Trade Representative (USTR) and Tridonex parent Cardone Industries Inc aimed to resolve complaints that the company’s workers were being rejected the rights of free association and collective bargaining.

The new “rapid-response” labor enforcement mechanism was negotiated into the United States-Mexico-Canada Agreement (USMCA) on trade to attempt to foster stronger unions and drive up wages in Mexico to decrease incentives for companies to move jobs south of the U.S. border.

The USMCA labor enforcement mechanism enables a quick review of rights complaints at individual plants and could result in import restrictions on products from those plants.

Mexican labor attorney Susana Prieto, who supported the Tridonex workers seeking to switch unions, said the deal marked a “first step” but added that it remained to be seen if the Mexican government would oversee the agreed changes at the plant.