US, Mexico Resolve USMCA Labor Dispute at Akwel Juárez Plant

The United States and Mexico have resolved a labor rights dispute at the Akwel Juárez México facility in Ciudad Juárez, Chihuahua, under the United States-Mexico-Canada Agreement's Rapid Response Labor Mechanism, the two governments announced. The case centered on employer interference in union activity and retaliatory dismissals of workers at the auto parts manufacturer.

As part of the 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 also restructured its human resources and labor relations management, disciplined staff who violated workers' organizing rights, and adopted a zero-tolerance neutrality policy covering freedom of association and collective bargaining.

Read more FTC, States Secure Corteva Settlement to Cut Pesticide Costs →

Workers at the facility were ultimately able to elect a representative union and negotiate a collective bargaining agreement that improved wages and working conditions — outcomes U.S. officials described as central to the mechanism's purpose. Mexico contributed by conducting on-site worker training, maintaining anonymous reporting channels, and monitoring the facility's ongoing compliance with Mexican labor law.

With remediation certified as complete, the U.S. Trade Representative directed the Treasury Secretary to resume liquidation of unliquidated goods entries from the Akwel plant — a trade restriction that had been imposed as leverage during the review. The Departments of Labor's Bureau of International Labor Affairs and the Office of the U.S. Trade Representative jointly facilitated the resolution with the Mexican government.

Officials framed the outcome as a demonstration that the USMCA's enforcement tools can compel foreign manufacturers to meet labor standards, preventing an unfair competitive disadvantage for U.S. workers. Continue reading at DOL News Releases and Briefs.