Background on Atento Services Case and its Significance
Since the implementation of the T-MEC Rapid Labour Response Mechanism (RLRM) in 2021, there have been 38 labour complaints registered. The recent resolution in the case of Atento Services S.A. de C.V. (MEX-USA-2024- 31A-01) sets important precedents that not only strengthen the application of labour complaints but also expand the scope of industries subject to review for violating or denying labour rights.
Key Findings of the Atento Services Case
The panelists reviewing the Atento Services case concluded that the United States’ arguments prevailed, confirming the company’s persistent denial of rights. The panel found no free or transparent elections, continued existence of white unions aligned with the company, lack of genuine collective bargaining process, and ineffective inspections without independent interviews.
Defining “Covered Establishment” under T-MEC
Another crucial aspect of the Mexico-US dispute was determining what constitutes a “covered establishment” under the T-MEC. With this ruling, the panel supported the US position, broadening the RLRM’s reach. It determined that any company whose services or goods are exported to the US or directly compete with US businesses can be subject to panels, regardless of sector.
Mexico argued that Atento should not be included in a panel as call centers are not listed among the priority sectors in T-MEC Annex 31-A. Meanwhile, the US maintained that a covered establishment is any company exporting goods or services to the US or competing directly with US businesses, irrespective of sector. All three panelists agreed that Atento qualifies as a covered establishment.
Implications and Expert Opinions
This decision is crucial as it expands the scope of industries subject to review, reinforces international standards for real worker protection within the T-MEC framework, and increases binational oversight of compliance with the 2019 Labour Reform.
Germán de la Garza de Vecchi, a partner at Fisher Phillips, commented that labour response mechanisms have been intensified, directly impacting Mexico and its businesses. This hardening reflects increased international scrutiny regarding labour rights respect and trade union life, placing Mexican organizations under greater watch and demand.
Pablo Franco, a labour specialist and member of the ILAW Network, stated that despite measures to address violations or denials, the Mexican government must stop being indifferent to sanctioning the denials it detects.
Current Status of T-MEC Labour Complaints
As of now, there are:
- 5 open complaints
- 28 resolved complaints
- 5 panels requested, with 2 already resolved
Since the T-MEC RLRM’s activation in 2021, there have been 38 labour complaints registered.
