Mexico Resolves Labor Dispute at Vidrio Decorativo Occidental

The Mexican government has announced the successful resolution of a labor rights case at Vidrio Decorativo Occidental (VDO), a company located in Matamoros, Tamaulipas. This case was addressed under the Rapid Response Labor Mechanism (MLRR) of USMCA’s Annex 31-A. The case concerned allegations of employer interference in union activities, anti-union discrimination, and violations of workers' rights to strike.

In December 2024, Mexico's Ministry of Labor and Social Welfare (STPS) completed an internal investigation, which was shared with the United States. The findings revealed evidence of actions by VDO that interfered with the workers' right to organize and engage in collective bargaining. 

During the investigation, which took place over a 45-day period following the formal review request, VDO worked closely with the STPS to remedy the situation. As part of the resolution, the company undertook several actions to correct the violations and improve conditions for its workforce.

These corrective actions included paying a previously withheld bonus and salary increases to employees who had not received them, participating in a dialogue table convened by the STPS, and reinstating a worker who had been wrongfully dismissed. The company also signed a commitment letter with the STPS, through which it pledged to rehire two workers, apply the agreed salary increases with retroactive payments, withdraw a complaint filed with the Tamaulipas State Attorney General's Office, and remove disciplinary records.

In addition to these actions, VDO published a neutrality letter concerning union matters and disseminated a document defining the company's behavioral guidelines. The company further committed to training all personnel on the contents of the neutrality letter, as well as on workers' rights to freedom of association and collective bargaining as stipulated by Mexican law.

With these actions, both the company and its workers now have improved conditions for exercising their labor rights, particularly regarding union membership and collective bargaining. After reviewing the steps taken by VDO, both the Mexican and US governments concluded that the issues raised in the review request were satisfactorily addressed.

“Mexico reiterates its commitment to continue ensuring the enforcement and respect of the collective rights of workers in this country,” says Mexico’s Ministry of Economy.