U.S. Opens Labor-Rights Review Of Yokohama Plant In Mexico
Tire Labor Rights
The Office of the United States Trade Representative has invoked the Rapid Response Labor Mechanism under the USMCA to review whether workers at Yokohama Tire Manufacturing Mexico, in the state of Coahuila, are being denied their rights to freedom of association and collective bargaining.
Import Liquidation Suspended
Alongside the review, the United States said it will suspend the liquidation of all entries of goods from the facility, which produces tires intended for export to the U.S. market, until further notice. The action follows the recent closure of Yokohama’s tire plant in Salem, Virginia, and the layoff of nearly 600 American workers, according to USTR, linking the trade enforcement step to broader labour conditions across the company’s operations.
Allegations Behind The Review
The request stems from an August 26 petition filed by the Liga Sindical Obrera Mexicana, a Mexican labor union, and the International Lawyers Assisting Workers Network. The petition alleges retaliation against union activity, including unequal treatment of LSOM supporters, denial of plant access to its special delegates while a competing union was granted entry, irregularities before a certificate-of-representation vote, unlawful dismissals, and non-compliance with the sectoral collective bargaining agreement for the rubber industry.
Next Steps Under The Mechanism
After reviewing the petition and supporting information within 30 days, the Interagency Labor Committee determined there was sufficient credible evidence of a denial of rights to justify invoking enforcement mechanisms. Mexico has 10 days to agree to conduct a review and, if it does, 45 days to complete it, with U.S. and Mexican officials maintaining close monitoring of the tire labor rights case throughout.
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