News Release
US Department of Labor, Trade Representative reach agreement with Mexican government to address labor violations at San Luis Potosí tire plant
WASHINGTON – The U.S. and Mexico today announced an agreement on a course of remediation at the Goodyear rubber tire facility in San Luis Potosí in response to a petition filed under the U.S.-Mexico-Canada Agreement’s Rapid Response Labor Mechanism.
The agreement seeks to remedy the denial of freedom of association and collective bargaining rights at the Goodyear facility resulting from the failure to apply a sector-wide agreement, known as the “contrato ley,” covering the rubber industry in Mexico that established wages and benefits, and other terms and conditions of employment. This course of remediation provides a significant response to an historic demand by one union to enforce a sector-wide agreement at a single plant.
To comply with the agreement, Goodyear must apply the sector-wide agreement at the San Luis Potosí facility while ensuring its workers maintain any wages or benefits that exceed the sector-wide agreement. The company must also provide back pay to workers who were previously paid less than what they were owed. Goodyear must also support a climate that promotes respect for workers’ choice of union representation and one free of interference in union activities. The company must also provide workers with confidential means of reporting rights violations without reprisals and inform them on how to file complaints with Mexican authorities.
The course of remediation at the Goodyear plant in San Luis Potosí represents another U.S.-Mexico joint effort to enable workers in Mexico to exercise their labor rights freely and benefit from collective representation.
“The Biden-Harris administration remains steadfast in addressing labor rights violations under the U.S.-Mexico-Canada Agreement and supporting robust freedom of association and collective bargaining rights across Mexico,” said Deputy Undersecretary for International Labor Affairs Thea Lee. “We commend the government of Mexico for committing to take action at Goodyear and in overseeing the just application of the sector-wide agreement to the benefit of workers.”
The United States and Mexico agreed to the course of remediation in response to the request for review by the U.S. of an alleged denial of rights under the Rapid Response Mechanism. Based on its findings, the government of Mexico committed to inform workers on the course of remediation and conduct periodic inspections related to those obligations; provide in-person trainings to all workers, supervisors and human resources personnel at the facility on freedom of association, collective bargaining and how the sector-wide agreement applies; and disseminate materials to increase public awareness for workers and employers on these issues.
“This course of remediation is aimed at remedying violations of workers’ rights at the Goodyear facility,” said Ambassador Katherine Tai. “The United States will closely monitor the plan’s implementation. I commend the Government of Mexico for its commitment to bringing this facility into compliance with Mexico’s labor law and for raising awareness of the applicability of the contrato ley across the sector.”
The USMCA Rapid Response Labor Mechanism allows the U.S. to take enforcement action based on the labor situation at an individual factory in Mexico if such facility fails to comply with domestic freedom of association and collective bargaining laws.
Operated by the Goodyear Tire & Rubber Company, the San Luis Potosí facility employs more than 1,100 union-eligible workers who produce rubber tires. Based in Akron, Ohio, Goodyear is one of the world’s largest tire companies. It manufactures products in 57 facilities in 23 countries and employs about 74,000 people worldwide.
