VU Manufacturing Closure That Leaves Workers in Limbo

The abrupt closure of VU Manufacturing has thrown the effectiveness of the U.S.-Mexico-Canada Treaty's labor protection mechanisms into question. Workers' rights hang in the balance, as the international trade community watches closely.

VU Manufacturing Closure That Leaves Workers in Limbo
U.S. Trade Representative Katherine Tai underlines the need for worker protection after VU Manufacturing's unexpected shutdown. Credit: Wikipedia

The recent closure of the VU Manufacturing facility in Mexico has raised concerns about the effectiveness of the Rapid Response Labor Mechanism (RRML) and the protection of workers' rights in the country.

The RRML is a trilateral mechanism established under the United States-Mexico-Canada Agreement (T-MEC) to address labor rights violations in Mexico. In March 2023, the United States and Mexico negotiated a remediation plan with VU Manufacturing to address allegations that the company was denying workers their right to form unions and engage in collective bargaining.