USMCA labor panel resolves in favor of Mexico in the case of the San Martín mine

Joint Statement

Mexico City, April 26, 2024

This is an automated translation of the press release issued in Spanish

The labor panel of the Treaty between Mexico, the United States and Canada (USMCA) has ruled in favor of Mexico in the case of the San Martín mine, located in Sombrerete, Zacatecas. The three members of the first arbitration panel of the Labor Rapid Response Mechanism (MLRR) determined that they did not have jurisdiction to rule on the denial of union rights at said mine.

In accordance with the position defended by Mexico, the trinational panel concluded that the denial of union rights can only be attributed to events after the entry into force of the USMCA and subject to the 2019 Labor Reform. The facts presented by the United States did not meet these criteria, as established by the panel.

This ruling is of utmost relevance, since it sets a precedent regarding the non-retroactivity of trade agreements. For Mexico, it is essential to avoid opening up this possibility both in labor disputes and in other commercial disputes.

With this ruling, our country also manages to set precedents for a reasonable and good faith use of the MLRR, limiting its application to its area of competence and deterring future attempts to use it for improper interference. Our objective is for Mexico to comply with its commitments at the international level and, at the same time, safeguard its national sovereignty to resolve its internal affairs.

In the case of the San Martín Mine, although the Grupo México company has repeatedly denied workers the rights to freedom of association and collective bargaining throughout the 16 years of conflict, these irregularities were or are in the process of being corrected by the authorities. nationals that do have jurisdiction over the case.

As an example, the Federal Conciliation and Arbitration Board prior to the international controversy had already attributed responsibility for the strike to the employers, ordering the payment of lost wages and various benefits.

The MLRR has proven to be a powerful and innovative tool to protect labor rights through trade agreements. It has also served to overcome the resistance against democracy and union freedom that still prevails in some workplaces.

However, to maintain its effectiveness and avoid wear and tear, it is crucial that its application is reasonable, proportional and in good faith. It is necessary that its use contributes to strengthening national institutions without undermining the decisions that have been made in defense of the rights of workers by Mexican institutions.

The Government of Mexico reaffirms its commitment to working closely with our trade partners in the United States and Canada to improve working conditions and wages throughout North America.

Looking ahead to the review of the USMCA in 2026, it will be necessary to address the improvement of this mechanism, correcting the asymmetries of its design so that, for example, Mexico can also use it under equal conditions to defend the rights of migrant workers in United States and Canada.

The Panel's determination is in the process of being translated and will be published by the USMCA Secretariat in the coming days.

https://www.gob.mx/se/prensa/panel-laboral-del-t-mec-resuelve-a-favor-de-mexico-en-el-caso-de-la-mina-san-martin- 363149?state=published

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