Page ContentThe new United States-Mexico-Canada Agreement (USMCA) introduces labor provisions that carry potentially significant consequences for employers operating across borders.
Under NAFTA, he explained, governments could be sued for failing to enforce labor laws, but companies themselves didn’t directly face grievances.
Under the USMCA, companies that violate Mexican labor law by interfering with freedom-of-association and collective bargaining rights may be hit with sanctions, he said.
Mexico has adopted labor reform to do away with this system, Compa noted.
This provision, which would be phased in over three years, aims to raise wages for Mexican workers.