US gets 2nd win in front of US-Mexico-Canada Agreement panel in labor rights dispute at Mexican critical minerals mine

News Release

US gets 2nd win in front of US-Mexico-Canada Agreement panel in labor rights dispute at Mexican critical minerals mine

WASHINGTON - The U.S. prevailed in a case involving denial of labor rightsand claims of violence against workers, including at the hands of known narcotraffickers, at the Camino Rojo Mine in Zacatecas, Mexico.

This is the second panel victory under the USMCA's Rapid Response Labor Mechanism, and the second successful labor case under the dispute settlement mechanism of any trade agreement. The panel determination is a key win for the Trump administration as it seeks to level the playing field for American workers by eliminating labor abuses and unfair trade practices abroad.

The dispute occurred at a facility owned by Orla Mining that produces gold and zinc - critical minerals identified by the Trump administration as vital to national security. The mine operators undercut American jobs and industry by acquiescing to narcotraffickers to suppress Mexican workers' ability to independently organize and bargain for better wages and working conditions.

The U.S. successfully argued that Camino Rojo stripped workers of their union rights through threats and violence so the company's preferred union could be installed and retained. Panel proceedings corroborated that the mine contracted a known narcotrafficker to interrupt union meetings with armed persons to make death threats and force workers to accept the company's preferred union. Armed people also visited workers' homes to threaten them to join Camino Rojo's preferred union.

"This panel win sends a loud and clear message: We will not tolerate actions by companies or criminals that undermine American workers," said U.S. Secretary of Labor Lori Chavez-DeRemer. "Mexico committed under USMCA to addressing violence against workers. When they fail to follow through, they create an uneven playing field and weaken critical supply chains."

After a thorough review, the panel found that Camino Rojo committed a denial of rights through employer interference and acquiescence to worker intimidation, and that actions taken by the Government of Mexico or by the company were insufficient to remedy these violations.

The department's Bureau of International Labor Affairs, in coordination with the U.S. Trade Representative, investigated the case, and those findings led to the panel resolution in favor of the U.S.

The RRM, developed under the first Trump administration, is an unprecedented trade tool that works to level the playing field for American workers and businesses by addressing weak labor law enforcement in Mexican workplaces that compete in trade with the United States. The RRM allows the United States to take trade enforcement action at a place of work in Mexico if the facility fails to comply with Mexico's freedom of association and collective bargaining laws.

Learn more about the department's work to make global competition fair for American workers.