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Teksid Hierro
Teksid Hierro grinding line.

U.S. Seeks Inquiry of Labor Practices at Teksid in Mexico

June 14, 2022
The USTR and Dept. of Labor are responding to a UAW and AFL-CIO complaint, and pressuring Mexico under USMCA terms to enforce free association and collective bargaining rights at Teksid Hierro.

The U.S. Trade Representative and the U.S. Dept. of Labor are requesting Mexico to investigate whether iron foundry Teksid Hierro de Mexico is denying its workers the rights of free association and collective bargaining. The charge stems from a complaint by the United Auto Workers, AFL-CIO, and a Mexican labor union.

The inquiry cites provisions in the U.S.-Mexico-Canada Agreement that require Mexico to establish regulations for recognizing workers’ collective-bargaining right. The USMCA also include provisions for expedited enforcement of collective bargaining and free association rights at the plant level.

In connection with the U.S. request, USTR Ambassador Tai directed the U.S. Secretary of the Treasury to suspend domestic sales of goods from the Teksid Hierro foundry until Mexico completes the investigation.

“The U.S. Department of Labor will continue working with our trade partners and the private sector to secure freedom of association and collective bargaining rights,” according to U.S. Secretary of Labor Marty Walsh, in a release announcing request.

Teksid Hierro de Mexico, at Frontera, Coahuila, Mexico, is a 100,000-mtpy gray and ductile iron foundry with about 1,500 workers, casting monoblocks and monoblock heads for truck engines and heavy machinery. It is among numerous foundries operated in Central and South America, Europe, and China operated by Teksid, a Stellantis holding.