The U.S. wants Mexico’s government to build strong institutions to protect worker rights as companies aiming to avoid supply chain disruptions in far-off production spots bring more jobs to the country, a top U.S. labor official told Reuters.
Mexico has begun to benefit from “nearshoring” in which companies seek to move production closer to the U.S. market while maintaining competitive costs.
The trend is further testing a trade deal known as the U.S.-Mexico-Canada Agreement (USMCA), in effect since July 2020.
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She said in an interview that Mexico was working to fulfill its commitments, backed by leadership keen on helping workers.
Deputy Undersecretary for International Labor Affairs Thea Lee has voiced government concerns over workers’ rights in Mexico to the press, as America’s southern neighbor continues enjoying an increasingly bullish labor market. (REUTERS/Henry Romero/File Photo)
Mexico’s new regulations favor companies taking on higher ethical standards, she said.
“Maybe 20 years ago it was okay for a multinational corporation to throw up their hands and say, ‘we have no idea what’s in our supply chain, what the labor conditions are,'” she added.
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Since 2020, several U.S. labor complaints in Mexico have paved the way for independent unions to land pay raises and even expand. Lee said such examples inspire workers who in the past may have feared threats or dismissals for trying to organize.
Four more cases are under review: At a garment factory, an auto parts plant, a Goodyear tire plant, and a mine owned by conglomerate Grupo Mexico.
“It’s very disappointing and frustrating,” Ramirez said. “We wanted to fight for things to improve.”