“Unfortunately, the company undermined the majority union’s ability to represent workers in collective bargaining and their right to strike,” Thea Lee, US deputy assistant secretary of labor for international affairs, said in a statement.
“We note with disappointment VU’s decision to close its facilities without adhering to the agreed course of remediation,” he added.
The case marks the first time that the United States has reprimanded a company for failing to comply with its commitments following a T-MEC labor investigation, unlike 13 other workplaces that have also been subject to review in Mexico.
In March, Mexico and its northern neighbor pledged to oversee VU Manufacturing’s compliance with a series of commitments to remain neutral on union issues and allow workers to organize freely.
VU Manufacturing, a Michigan-based company that is not publicly traded, did not immediately respond to a request for comment.
The US Department of Labor urged Mexico to avoid retaliation against former VU workers when they seek new jobs, and to ensure that VU makes timely payments to laid-off employees.