Workers File New Labor Complaint Against VU Manufacturing

Members of the democratic union of the League of Mexican Workers, also known as La Liga, presented a new labor complaint under USMCA’s Rapid Response Mechanism (RRM) against VU Manufacturing, seeking to establish a panel to resolve the alleged denial of their labor rights.

The first complaint filed against VU Manufacturing’s plant in Piedras Negras, Coahuila, took place in mid-2022, when workers argued that the company refused to allow workers to freely organize unions to undertake the bargaining of their contract. 

La Liga accused VU Manufacturing of inviting representatives of the Mexican Worker Confederation (CTM) to enter the plant and assume union representation without the consent of workers, as reported by MBN. CTM, which has been pointed to as a company-friendly union, intimidates workers and undermines their independent organization, according to the Border Committee of Workers.

At the time, the US Inter-Agency Labor Committee (ILC) determined there was sufficient and credible evidence of a denial of rights and the USTR submitted a request to Mexico to review the matter. The Federal Center for Conciliation and Labor Registration held an election for union representation at the company and results favored La Liga, with 186 votes against CTM’s 101 votes.

Based on the results of this process, ILC decided to resolve the matter, since "apparently the conditions were in place for a negotiation process that respects the rights of workers affiliated with La Liga and all workers at VU Manufacturing."

However, this has not happened, allege workers. Their newest complaint delivered to the ILC states that “favoritism for CTM continues to be evident. The company refuses to accept collective bargaining in good faith in which the parties can respectfully analyze the different proposals and has only been stalling the start of negotiations.”

VU Manufacturing’s core business is soft trim products and assemblies for the automotive, nautical and medical industries. At the Piedras Negras plant, the company produces vehicle interior parts, such as console armrests, seat back panel assemblies, instrument panel assemblies, seat trims, shift and brake boot assemblies and tire covers, among other products.

Under USMCA, Mexico committed to pass a comprehensive reform of its union law to strengthen workers’ rights of freedom of association and collective bargaining. Through the RRM, USMCA enables the US and Canada to take action and investigate complaints of labor violations and impose trade sanctions to companies that violate the reform.

The first resolution under USMCA’s RRM concluded successfully in Sept. 2021. It involved a General Motors’ plant in Silao, Guanajuato, where workers were allegedly being denied their freedom of association and collective bargaining rights. Several months later, in May 2022, the winning union (SINTTIA) signed the first collective labor agreement with the automaker, as reported by MBN.