The US Trade Representative (USTR) asked the Mexican government to review the labor rights of workers at the Servicios Industriales González company, dedicated to the manufacture of steel components for companies such as John Deere, Caterpillar and Komatzu in the northern state of Nuevo León.
“Department of Labor, Office of Trade Representative seek review of alleged labor rights’ denial at Nuevo León, Mexico, industrial parts facility,” reported the United States government.
The petition on labor rights is part of the USMCA trade agreement. Servicios Industriales González manufactures steel components and operates three integrated plants that employ approximately 500 workers. The company's goods are part of the production chain of international brands such as John Deere, Caterpillar and Komatzu.
Mexico's government has 10 days to decide whether to conduct a review and 45 days to investigate the claims of denied workers’ rights and present its findings.
According to USMCA rules, the penalty for denial of labor rights consists of the elimination of preferential tariff treatment for exported goods. In addition to fines and even a ban on the entry of goods into the US market in case of repeat offenses.