Story details

The United States and Mexico announced a formal course of remediation on October 2 for the Corporación de Occidente tire facility in El Salto, Jalisco. The company makes automotive and specialty tires. The announcement is the fourteenth formal remediation course agreed by the two governments under the United States-Mexico-Canada Agreement’s Rapid Response Labor Mechanism, according to the US Trade Representative. The plan addresses violations of Mexican law identified in the case and sets out measures to protect freedom of association and collective bargaining at the plant.

A central measure concerns 12 workers who were dismissed unlawfully, according to the announced plan. The company is to reinstate them with full back pay and benefits, or pay full severance, according to each worker’s preference. The plan also requires the company to put its neutrality statement and rules on freedom of association and collective bargaining into practice, train all personnel, and apply a zero-tolerance policy for violations. Workers are to be informed of the plan and the company’s stated commitment to respect those rights.

The remediation measures also address how employees can raise concerns and obtain information. The company is to install and publicize an anonymous, confidential complaint mechanism. It must keep its neutrality statement, guidelines, collective bargaining agreement, training materials, and information about complaint channels accessible through its website and internal communications platform. The plan calls for timely communication to workers of evaluations, performance reports, and incident reports.

A separate part of the plan concerns production materials. Corporación de Occidente is to use a reliable tracking system to document, and where appropriate monitor, allocation of materials so workers have what they need for production and distribution is fair, consistent, and non-discriminatory. The announcement does not state a production target, investment amount, or timetable for factory output. The commitments described are labor-rights and workplace-process measures.

The Mexican government has its own monitoring and training obligations. It will monitor the facility for compliance with the remediation plan and Mexican laws on freedom of association and collective bargaining. Mexico will conduct in-person training designed to help all workers understand and exercise those rights, including information about the alleged denial of rights at the facility and the conciliation process available to dismissed workers.

The plan provides separate rights training for supervisors, human-resources and labor-relations personnel, and senior or trusted officials. Mexico is also to maintain a direct email address, reporting platform, and telephone line through which workers can confidentially report possible unlawful interference or other rights violations. The government said it would investigate allegations in a timely manner. These measures assign continuing responsibilities to both the company and the Mexican authorities.

The case began with a petition received on October 28, 2025, from two dismissed workers, the USTR account says. The petition alleged that the company and incumbent union leadership acted together against workers who spoke against the union or its leaders and sought more transparency and democratic representation. The interagency committee found sufficient credible evidence to allow the United States to invoke the mechanism in good faith. These are allegations and procedural findings described in the USTR release, not an independent judicial ruling.

The United States asked Mexico to review the matter on November 26, 2025. Mexico agreed to conduct a review and concluded on January 23, 2026 that a denial of rights had not occurred at the facility. After that investigation, the company agreed to certain remedial actions, and the two governments then agreed on the formal course announced in October. The agreement records the subsequent steps without changing the distinction between the earlier review and the commitments now set out for future compliance.