Ben Davis, International Affairs Director for the United Steelworkers, joined America’s Work Force Union Podcast to discuss the U.S.-Mexico-Canada trade agreement (USMCA).
The USMCA created the Independent Mexico Labor Expert Board, which Davis chairs.
He said the board's goal is to ensure Mexican employers treat workers fairly. Davis analyzes the progress of labor reforms in Mexico and said many employers create employer-run unions and mandate their employees join their union. This creates an unfair labor practice, as the average Mexican worker makes one-tenth of the wages of their U.S. counterparts.
A major component of the USMCA is the Rapid Response Labor Mechanism that enables Mexican workers to file complaints against their employers with the US Labor Department. Once a Mexican worker files a case, the Labor Department has 30 days to investigate. If the Labor Department finds a violation, Mexico must resolve the issue within 45 days or potentially face trade sanctions. Seven cases have been filed so far, and in nearly every instance, they resulted in democratic unions replacing employer-run unions.
Davis pointed out that the USMCA trade regulations do provide some loopholes. However, the Labor Expert Board can assess those loopholes and provide recommendations to close them. One loophole Davis mentioned was the increase in Chinese steel dumped in the U.S. through Mexico. He feels many countries take advantage of Mexico's low wages and the free trade agreement to gain access to the U.S. Market.
Listen to the entire episode to learn more about these topics.