USMCA Labor Dispute Win Over Rights Denial at Mexican Mine

DOL News Releases

Filed March 27th, 2026

Detected March 28th, 2026

Summary

The U.S. Department of Labor announced a victory in a USMCA labor dispute concerning the Camino Rojo Mine in Mexico. The panel found that the mine denied workers' labor rights through intimidation and violence, impacting critical mineral supply chains. This marks the second panel win under the USMCA's Rapid Response Labor Mechanism.

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What changed

The U.S. Department of Labor, in coordination with the U.S. Trade Representative, has secured a victory in a labor dispute under the US-Mexico-Canada Agreement (USMCA) concerning the Camino Rojo Mine in Zacatecas, Mexico. A USMCA panel determined that the mine, owned by Orla Mining, denied workers their rights by interfering with union organization and acquiescing to violence and threats, including from narcotraffickers, to suppress independent collective bargaining. This ruling supports the U.S. objective of leveling the playing field for American workers by addressing labor abuses in international trade.

This decision underscores the enforcement capabilities of the USMCA's Rapid Response Labor Mechanism (RRM). Companies operating in Mexico that compete with U.S. industries, particularly in critical mineral supply chains, must ensure compliance with Mexico's freedom of association and collective bargaining laws. Failure to do so can result in trade enforcement actions. Compliance officers should review their supply chain labor practices and ensure they do not engage in or tolerate actions that undermine workers' rights, as such violations can lead to formal dispute resolution under the USMCA.

What to do next

Review supply chain labor practices for compliance with USMCA labor provisions.
Ensure no interference with workers' rights to organize and collectively bargain.
Assess company and government actions to remedy labor rights violations.

Source document (simplified)

News Release

US gets 2nd win in front of US-Mexico-Canada Agreement panel in labor rights dispute at Mexican critical minerals mine

WASHINGTON – The U.S. prevailed in a case involving denial of labor rights and claims of violence against workers, including at the hands of known narcotraffickers, at the Camino Rojo Mine in Zacatecas, Mexico.

This is the second panel victory under the USMCA’s Rapid Response Labor Mechanism, and the second successful labor case under the dispute settlement mechanism of any trade agreement. The panel determination is a key win for the Trump administration as it seeks to level the playing field for American workers by eliminating labor abuses and unfair trade practices abroad.

The dispute occurred at a facility owned by Orla Mining that produces gold and zinc – critical minerals identified by the Trump administration as vital to national security. The mine operators undercut American jobs and industry by acquiescing to narcotraffickers to suppress Mexican workers’ ability to independently organize and bargain for better wages and working conditions.

The U.S. successfully argued that Camino Rojo stripped workers of their union rights through threats and violence so the company’s preferred union could be installed and retained. Panel proceedings corroborated that the mine contracted a known narcotrafficker to interrupt union meetings with armed persons to make death threats and force workers to accept the company’s preferred union. Armed people also visited workers’ homes to threaten them to join Camino Rojo’s preferred union.

“This panel win sends a loud and clear message: We will not tolerate actions by companies or criminals that undermine American workers,” said U.S. Secretary of Labor Lori Chavez-DeRemer. “Mexico committed under USMCA to addressing violence against workers. When they fail to follow through, they create an uneven playing field and weaken critical supply chains.”

After a thorough review, the panel found that Camino Rojo committed a denial of rights through employer interference and acquiescence to worker intimidation, and that actions taken by the Government of Mexico or by the company were insufficient to remedy these violations.

The department’s Bureau of International Labor Affairs, in coordination with the U.S. Trade Representative, investigated the case, and those findings led to the panel resolution in favor of the U.S.

The RRM, developed under the first Trump administration, is an unprecedented trade tool that works to level the playing field for American workers and businesses by addressing weak labor law enforcement in Mexican workplaces that compete in trade with the United States. The RRM allows the United States to take trade enforcement action at a place of work in Mexico if the facility fails to comply with Mexico’s freedom of association and collective bargaining laws.

Learn more about the department’s work to make global competition fair for American workers.

Agency Bureau of International Labor Affairs Date March 27, 2026 Release Number 26-570-NAT Media Contact: Christine Feroli Phone Number 202-693-4664 Email feroli.christine.e@dol.gov Media Contact: Lorynn Holloway Phone Number (202) 693-4652 Email holloway.lorynn.n@dol.gov Share This
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