Background on the Case and Key Players
The case revolves around a call center operated by Atento in Mexico, which was accused of denying workers’ rights. The United States filed a complaint under the USMCA (United States-Mexico-Canada Agreement), leading to a labor panel decision in favor of the U.S. The Mexican government, represented by the Secretariat of Labor and Social Welfare (STPS) and the Secretariat of Economy (SE), expressed disagreement with this decision.
Who is Atento?
Atento is a global provider of business process outsourcing services, with call centers being one of its primary offerings. The company operates in multiple countries, including Mexico, where it has a significant presence.
Why is this case relevant?
This case highlights the importance of labor rights protection under free trade agreements, such as the USMCA. It also demonstrates how disputes between countries can arise when labor standards are perceived to be violated.
Government’s Response and Actions Taken
The Mexican government asserts that the labor panel did not consider all arguments presented by Mexico, including a jurisdictional objection. The panel’s decision, according to the government, failed to address crucial elements such as burden of proof allocation, treaty interpretation according to the Vienna Convention on the Law of Treaties, and the relevance of implemented corrective measures.
Between April 2024 and January 2025, the STPS facilitated six rounds of dialogue between Atento and the Mexican Telephone Workers’ Union (STRM). The STRM filed the complaint with the U.S. Department of Labor, alleging violations of workers’ collective rights in a call center located in Pachuca, Hidalgo. These alleged violations included employer interference in union activities and wrongful terminations of employees attempting to join the union.
Following the STRM’s complaint, the Mexican government accepted it under the USMCA’s Rapid Response Mechanism (RRM) and initiated an investigation. Atento took several corrective actions, including a neutrality commitment in labor matters, conduct guidelines, staff training on collective rights and non-discrimination, and facilitating STPS training for the management and HR teams.
US Government’s Perspective
The U.S. government deemed Atento’s corrective actions insufficient and requested the establishment of a labor panel to further address the issue.
Key Questions and Answers
- What is the USMCA? The United States-Mexico-Canada Agreement (USMCA) is a trade agreement that replaced the North American Free Trade Agreement (NAFTA) in 2020. It aims to facilitate trade while ensuring labor, environmental, and intellectual property rights protection.
- What is the Rapid Response Mechanism (RRM)? The RRM is a labor dispute resolution mechanism under the USMCA that allows for swift investigation and resolution of labor rights violations.
- What are the implications of this disagreement between Mexico and the U.S.? This disagreement may lead to further discussions, potential revisions of corrective measures, or even appeals to higher authorities within the USMCA framework. It underscores the importance of labor rights protection and the challenges in enforcing these rights across international borders.