US, Mexico Resolve USMCA Labor Dispute at Akwel Juárez Plant
Workers at a Mexican auto parts facility won union rights and back pay after a USMCA rapid-response labor case was settled.
The United States and Mexico have resolved a labor dispute at the Akwel Juárez México facility in Ciudad Juárez, Chihuahua, under the USMCA's Rapid Response Labor Mechanism, the two governments announced. The case centered on employer interference in union activity and the retaliatory dismissal of workers at the auto parts manufacturer.
As part of the agreed remediation plan, Akwel reinstated three workers with full back pay and benefits and paid full severance to six others, based on individual preferences. The company was also required to restructure its human resources and labor relations management and take disciplinary action against staff found to have violated workers' freedom of association rights.
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Workers at the facility were subsequently able to elect a representative union and negotiate a collective bargaining agreement that brought improvements to wages and working conditions — outcomes that officials described as central to the mechanism's purpose. Akwel additionally committed to annual neutrality training for all personnel, installed an anonymous worker complaint system, and published relevant documents on its company website.
With remediation confirmed complete, the U.S. Trade Representative directed the Secretary of the Treasury to resume liquidation of unliquidated entries of goods from the facility — a trade enforcement tool used to pressure companies during the review period. Mexico's government contributed by conducting on-site worker rights training, maintaining anonymous reporting channels, and monitoring the facility's ongoing compliance with Mexican law.
The Department of Labor's Bureau of International Labor Affairs and the Office of the U.S. Trade Representative jointly facilitated the resolution. Officials framed the outcome as consistent with the Trump administration's America First trade policy, which aims to prevent foreign manufacturers from gaining competitive advantage by suppressing labor protections. Continue reading at DOL News Releases and Briefs.
