Why 🐸 NorthAmericanTradePolicy picked: United States and Mexico Announce Course of Remediation at Corporación de Occidente Facility

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Source: ustr.gov

United States and Mexico Announce Course of Remediation at Corporación de Occidente Facility pbrouillette Fri, 10/02/2026 - 14:46 <p>WASHINGTON — The United States and Mexico today announced a course of remediation at the Corporación de Occidente, S.A. de C.V. (Corporación de Occidente or the company) facility located in El Salto, Jalisco, Mexico, which manufactures automotive and specialty tires. This announcement marks the fourteenth time the United States and Mexico have agreed on a formal course of remediation in a case under the United States-Mexico-Canada Agreement’s (USMCA) Rapid Response Labor Mechanism (RRM).  </p> <p>The course of remediation details a plan to remedy violations of Mexican law at the facility and includes measures aimed at ensuring freedom of association and collective bargaining rights are protected at the facility moving forward.</p> <p>Under the course of remediation, the Government of Mexico (Mexico) will ensure that Corporación de Occidente takes various remedial actions, including to: </p> Reinstate twelve unlawfully dismissed workers with full backpay and benefits or pay full severance to the workers, based on their respective preferences;  Implement and train all company personnel on its neutrality statement and guidelines related to freedom of association and collective bargaining, including a zero-tolerance policy for violations;  Inform workers about the Course of Remediation, and affirm Corporación de Occidente’s intention to respect workers’ exercise of freedom of association and collective bargaining rights in the future; Install and publicize a complaint mechanism through which workers can report violations of their rights and breaches of company policies anonymously and confidentially;  Maintain on the company website and in any internal communications platform the neutrality statement and guidelines, collective bargaining agreement, training materials, and information about complaint mechanisms maintained by the company and Mexico, such that the information is easily accessible to workers;  Implement a reliable tracking system to document and, where appropriate, monitor the allocation of materials, to ensure that workers have all necessary materials for production and that distribution is fair, consistent, and non-discriminatory; and  Commit to communicating all evaluations, performance reports, and incident reports to workers in a timely and appropriate manner. <p>Under the course of remediation, Mexico will, among other actions: </p> Monitor the facility with regard to the obligations of the course of remediation 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, including by informing workers of the denial of rights at the facility and educating workers on the conciliation process available to any dismissed worker; 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. <p>Background</p> <p>The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On October 28, 2025, the ILC received an RRM petition from two dismissed workers at the Corporación de Occidente facility. The petition alleged that the company and leadership of the incumbent union at the facility acted together to dismiss and retaliate against workers who spoke out against the union or its leaders and sought to promote greater transparency and democratic representation within the 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.  </p> <p>As a result, on November 26, 2025, the United States submitted a request that Mexico review the matter. Mexico agreed to conduct a review and, on January 23, 2026, concluded a denial of rights had not occurred at the facility. Following Mexico’s investigation, Corporación de Occidente agreed to take certain remedial actions and, subsequently, the United States and Mexico agreed on a course of remediation.</p> <p>Read the full course of remediation <a href="https://ustr.gov/sites/default/files/files/Issue_Areas/Enforcement/USMCA/Corporacion%20Occidente_FINAL%20Course%20of%20Remediation.pdf" rel="nofollow noopener noreferrer ugc" target="_blank">here</a>.</p> <p>Read an unofficial courtesy Spanish translation of the full course of remediation <a href="https://ustr.gov/sites/default/files/files/Issue_Areas/Enforcement/USMCA/Corporacion%20Occidente_FINAL%20Course%20of%20Remediation_SPA.pdf" rel="nofollow noopener noreferrer ugc" target="_blank">here</a>.</p> <p>###</p>