Introduction to the MLRR and T-MEC
The Mexican Labor Response Mechanism (MLRR) and labor agreements under the United States-Mexico-Canada Agreement (T-MEC) have brought significant changes to the Mexican labor landscape. These innovative provisions aim to hold companies accountable for labor violations and empower workers to defend their rights.
The Case of San Martín Mine and Atento Call Center
In April 2024, the T-MEC Panel of Experts (PE) addressed the San Martín mine case in Zacatecas, stating they lacked jurisdiction to rule on denied workers’ rights. Despite this, the Mexican government declared victory, ignoring labor rights violations such as freedom of association and collective bargaining.
Recently, the PE ruled on the Atento call center case in Hidalgo, Mexico. The Mexican government quickly expressed dissatisfaction with the resolution.
The MLRR’s Key Features and Benefits
The MLRR has three main advantages:
- Holding companies accountable: The MLRR makes companies responsible for labor violations in their workplaces, removing states from the equation while ensuring they still monitor, evaluate, and remedy issues.
- Empowering workers: The MLRR creates institutional spaces for workers to voice their concerns through communication lines, support offices, and national and transnational networks. This empowers workers to know they are not alone in defending their rights.
- Powerful sanction mechanisms: The MLRR establishes strong penalties for companies violating workers’ rights, including customs account freezing, fines, and potential denial of goods entry into the complaining country.
Misconceptions about the MLRR’s Applicability
Some believe the MLRR only applies to exporting companies. However, Annex 31 A 15, fraction II, clarifies that the MLRR applies to any installations competing with those in another jurisdiction. This dispels the false debate that the MLRR does not apply to Atento.
The PE’s Resolution in the Atento Case
The PE’s resolution in the Atento case recognized the Mexican government’s efforts and the relevance of adopted reparations. However, it noted these were insufficient due to Atento’s continued interference in workers’ organization and representation decisions instead of acting neutrally.
Atento’s Labor History and Current Situation
Atento, a global call center leader with operations in 17 countries and 110,000 employees, has a history of labor disputes in Mexico and other countries. The company’s actions, including ignoring fundamental workers’ rights and paying minimum wages, are not due to a lack of resources but rather a disregard for workers’ rights.
Key Questions and Answers
- What is the MLRR? The Mexican Labor Response Mechanism (MLRR) is a provision under the T-MEC that holds companies accountable for labor violations and empowers workers to defend their rights.
- Why is the MLRR important? The MLRR fills crucial gaps left by Mexican labor institutions, which often lack resources, capabilities, and independence.
- What happened in the Atento case? The PE recognized the Mexican government’s efforts but found insufficient reparations due to Atento’s continued interference in workers’ organization and representation decisions.
- What are the implications of the MLRR and T-MEC for Mexican workers? The MLRR and T-MEC have led to 39 cases, sending two crucial messages: (1) “You could be next,” reminding companies of their accountability, and (2) urging the Mexican government to act collectively to strengthen labor laws and institutions, ensuring a more integrated North American region.
