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ARTICLE · 18 MAY 2021

Potential Liability For Labor Issues In Mexico – Recent Developments

If you are a U.S. manufacturer with operations in Mexico, please pay attention. As we previously reported, the United States-Mexico-Canada Agreement (USMCA) has certain labor union requirements...

United StatesEmployment and HR

If you are a U.S. manufacturer with operations in Mexico, please pay attention.  As we previously reported, the United States-Mexico-Canada Agreement (USMCA) has certain labor union requirements, a key one being that employees are guaranteed the basic rights of freedom of association and collective bargaining (with the nonstated objective of increasing wages in the country). The USMCA requires that existing collective labor contracts be free of “interference” from employers. Contrary to the way that unions have typically been placed under the control of an employer or an employer's organization in Mexico, labor unions in Mexico shall now have autonomy to bargain for higher wages and benefits. 

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