Mexico, US Reach Labor Agreement at Draxton Auto Parts Plant in Mexico

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Mexico and the United States have agreed to a remediation plan over alleged worker rights abuses at a Draxton auto parts plant in Mexico, Mexican officials said on Monday, marking the latest labor complaint to be closed under a regional trade deal.

The U.S. government in May asked Mexico to review whether rights were being violated at Draxton Mexico in the central city of Irapuato.

Since the U.S.-Mexico-Canada (USMCA) trade deal took effect in 2020, the U.S. has launched a series of labor complaints against facilities in Mexico, including cases that have paved the way for new unions to secure better pay and benefits.

The Mexican investigation at Draxton found various instances that appeared to violate worker rights, including company interference in union activity and the firing of a union leader, the Economy and Labor ministries said in a joint statement.

As part of the remediation plan, Draxton agreed to re-hire the union representative, issue a neutrality statement, refrain from interference and train workers about their rights, Mexican officials said.

Draxton did not immediately respond to a request for comment.

Source: Reuters