A Rapid Response Labor Mechanism (RRM) panel established under the United States-Mexico-Canada Agreement (USMCA) found in favor of the United States in a determination regarding a labor dispute between Atento Servicios and Sindicato de Telefonistas de la República Mexicana (STRM) at the Atento call center in the Mexican state of Hidalgo. For the United States, this is the first panel victory under the RRM, and the first successful labor case under the dispute mechanism of a trade agreement.
The Panel found a denial of rights occurred at the Atento call center. After a thorough review, the Panel found that the evidence “undoubtedly proves Atento’s wrongful interference and anti-union discrimination,” including by creating “a climate of fear” through “a series of interventions made by multiple individuals over several months.” The Panel highlighted Atento’s “anti-union discrimination against the entire STRM leadership,” resulting in “the decapitation of the coalition,” which it found to be a “serious violation.”
Further, the Panel determined that the actions taken by Mexico were not sufficient to remediate the Denial of Rights, especially “in view of the gravity, duration and structural nature of the denial,” because they “did not change the labor climate.”
Developed under the first Trump Administration, the RRM is an unprecedented trade tool that helps to level the playing field for American workers and businesses by preventing Mexican businesses from gaining a competitive advantage by violating labor laws.
Background
The United States Trade Representative and the Secretary of Labor co-chair the Interagency Labor Committee for Monitoring and Enforcement (ILC). On November 28, 2023, the ILC received an RRM petition from STRM, a Mexican union. The ILC, in response to the petition, determined that there was sufficient, credible evidence of a denial of rights enabling the good faith invocation of enforcement mechanisms. As a result, the United States Trade Representative submitted a request to Mexico that Mexico review whether workers at the Atento call center were being denied the right to freedom of association and collective bargaining, because Atento had interfered in workers’ union activities, including by dismissing STRM organizers due to their union activity, threatening workers with reprisals, and otherwise coercing workers to withdraw their support for STRM and instead join the Sindicato Nacional Presidente Benito Juárez de la Industria de la Comunicación de la República Mexicana (Benito Juarez union).
At the conclusion of its 45-day review period, Mexico found that a denial of rights occurred at the facility, but that Atento had taken the necessary measures to remediate the denial of rights. The United States disagreed with this determination and, on April 16, 2024, requested the establishment of this RRM panel to verify the facility’s compliance with Mexican labor laws and determine whether workers at the Atento call center were being denied the rights to freedom of association and collective bargaining. After receiving written submissions from the disputing parties, the panel conducted a verification on May 12, 13, and 14, 2025, and held a hearing in Mexico City on May 15 and 16, 2025. The RRM panel issued its written determination, and on August 21, 2025, the Parties made the determination public.