United States and Mexico Announce Memorandum of Understanding at Industrias Tecnos Facility

WASHINGTON - The United States and Mexico announced today a memorandum of understanding regarding denial of rights concerns at the Industrias Tecnos, S.A. de C.V. (Industrias Tecnos or the company) facility located in Cuernavaca, Morelos, Mexico, where the company manufactures small arms ammunition.

The memorandum of understanding details a plan to remedy violations of Mexican law at the facility and includes actions aimed at ensuring freedom of association and collective bargaining rights are protected at the facility moving forward.

Under the terms of the memorandum of understanding, the Government of Mexico (Mexico) will ensure that Industrias Tecnos takes various remedial actions, including to:

• Verify proper compensation for dismissed workers as required by Mexican law, for any wages or benefits those workers did not receive as a result of unlawful dismissals;
• Implement and train all company personnel on a neutrality statement and guidelines related to the freedom of association and collective bargaining, including a zero-tolerance policy for violations, and commit to additional retraining as needed;
• Install and publicize a complaint mechanism through which workers can report violations of their rights and breaches of company policies anonymously and confidentially; and
• Maintain on the company website and in any internal communications platform the neutrality statement and guidelines, training materials, and information about complaint mechanisms maintained by the company and Mexico, such that the information is easily accessible to workers.

Under the terms of the memorandum of understanding, Mexico will, among other actions:

• Review and verify determinations made in relation to dismissed workers identified by the United States to ensure outcomes were effectuated in accordance with Mexican law;
• Monitor the facility with regard to the obligations of the memorandum of understanding and compliance with Mexican laws related to freedom of association and collective bargaining;
• Conduct in-person training that is structured to ensure all workers understand their right to freedom of association and collective bargaining and how to exercise it;
• Conduct separate workers' rights training for supervisors, human resources and labor relations personnel, and other high-level and "trusted" officials; and
• Maintain a direct email address, reporting platform, and telephone line for workers to anonymously report any potential acts of unlawful interference or other violations of freedom of association and collective bargaining rights, and timely investigate any allegations.

The United States and Mexico agreed to establish a deadline of October 15, 2026, to complete the actions listed in the memorandum of understanding.

Background

The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On May 23, 2024, the ILC received a Rapid Response Labor Mechanism (RRM) petition from Sindicato Independiente de Trabajadores y Empleados, Transporte, Carga y Descarga, Exploración y Explotación de Minerales Básicos, Productos Metálicos, Similares y Conexos de la República Mexicana (Sindicato Metálico), a Mexican labor union. The petition alleged an ongoing Denial of Rights by Industrias Tecnos at its facility in Morelos, Mexico. The ILC reviews RRM petitions that it receives, and the accompanying information, within 30 days. The ILC determined that there was sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms.

As a result, on June 24, 2024, the United States submitted a request that Mexico review the matter, and Mexico thereafter agreed to conduct a review. After Mexico issued a report finding no Denial of Rights at the facility, the United States requested the establishment of a panel pursuant to Article 31-A.5.1(a) of the United States-Mexico-Canada Agreement.

Read the full memorandum of understanding here.

Read an unofficial courtesy Spanish translation of the full memorandum of understanding here.

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