United States Announces Successful Resolution of Rapid Response Labor Mechanism Matter at Modern Metal Alloys, S.A. de C.V.

WASHINGTON - The United States today announced the successful resolution of the USMCA Rapid Response Labor Mechanism (RRM) matter at the Modern Metal Alloys, S.A. de C.V. (MMA) facility, located in Querétaro, Mexico. The United States has resumed liquidation of tariffs on goods from the MMA facility, which manufactures aluminum for the production of auto parts.

Actions taken by the facility to address the matter include:

• Offering reinstatement with backpay and providing full severance to one worker who had been dismissed in retaliation for his union activity;
• Restoring workers to prior work assignments held before they were reassigned in retaliation for union activity;
• Granting the union holding the certificate of representation access to the company's facility;
• Negotiating a new collective bargaining agreement with the union holding the certificate of representation;
• Adopting, disseminating, and implementing a neutrality statement and company guidelines on freedom of association and collective bargaining, including a zero-tolerance policy for violations, and training all company personnel on the neutrality commitments and company guidelines; and
• Providing a complaint mechanism for workers to anonymously report any violations of their rights and breaches of company guidelines on freedom of association and collective bargaining.

Actions taken by the Government of Mexico (Mexico) to address the matter include:

• Delivering in-person trainings for all company personnel on freedom of association and collective bargaining;
• Offering an email address for workers to anonymously report any intimidation, coercion, or threats with respect to their selection of a union and union activities; non-neutrality concerning unions who represent or seek to represent workers; or interference in internal union affairs; and
• Monitoring the facility and engaging with the workers and the company throughout its review period.

Based on these measures, the United States Trade Representative, Ambassador Greer, has directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility.

Background

The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On March 17, 2025, the ILC received an RRM petition from the Secretary General of the Sindicato Industrial de Trabajadores de la Transformación, Construcción, Automotriz, Agropecuaria, Plásticos y de la Industria en General, del Comercio y Servicios, Similares, Anexos y Conexos del Estado de Querétaro, "Angel Castillo Resendiz" (Transformación Sindical), a Mexican labor union. The petition alleged that MMA had violated workers' rights by failing to recognize the legitimacy of Transformación Sindical, which holds the certificate of representation; refusing to sign a collective bargaining agreement; denying Transformación Sindical access to the facility; harassing and engaging in reprisals against workers due to their union activity, including through dismissal; and promoting and pressuring workers to affiliate with a company-aligned union. 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 April 16, 2025, the United States Trade Representative submitted a request to Mexico to review the matter. Mexico accepted the request and found that the company had taken the remedial steps necessary to address the alleged denials of rights related to freedom of association and collective bargaining. The United States subsequently engaged in further negotiation with MMA, after which MMA agreed to take additional remedial actions.

As a result of the above actions taken by the facility and Mexico to resolve the action, the United States agrees that there is no ongoing denial of rights. Ambassador Greer's letter directing the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility is available here.

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