By Daina Solomon

SAN LUIS POTOSI Mexico (Reuters). A senior U.S. labor officer commended Mexico on Wednesday for its progress in implementing a labor-reform that is crucial to a new trade agreement. But, he also noted that the country still has a great deal of work ahead and the need to finance the implementation.

It is part of the United States-Mexico-Canada Agreement. This agreement was in effect for two years. This law was created to speed up the resolution of labor disputes and help Mexican workers get better wages after years of stagnant incomes.

In an interview with Reuters, U.S. Deputy secretary of Labor Julie Su said that “the amount of work needed to be done” in San Luis Potosi (one of Mexico’s most important auto-making centers).

Su was on her first trip abroad in this role. She met workers, business leaders, as well as local officials.

She stated that there is a general consensus about the fact that it will require resources.

In 2019, the labor reform law was passed. Mexico’s 31 state and federal capital, Mexico City, were to make changes in their labor justice system by May 2022.

Due to scheduling and budget limitations, Mexico’s Labor Ministry asked for a 5-month extension of the deadline for the remaining states.

Su maintained that Mexican officials have made progress, pointing to the establishment of a federal agency to quickly resolve worker disputes and oversee voting to ratify union agreements.

Additionally, she noted that both local and federal officials had increased training and hiring. She plans to continue doing so.

She stated, “We’re… looking to ensure that the remaining commitments are also fulfilled.”

Su encouraged American companies to show good behaviour in Mexico. General Motors (NYSE 🙂 was under scrutiny last year by USMCA for violations of worker rights, and Cardone from the United States over claims that Tridonex had suffered abuses.

Both firms stated that they are committed to protecting worker rights.

Su expressed hope that American businesses will also support USMCA’s commitments. She said, “We hope to see a wider recognition of the fact that what is good for workers is good business,”

Su was contacted by several employees from 3M’s San Luis Potosi facility. She asked them to monitor U.S. firms in Mexico.

Su said, “We acknowledge the importance of watching out for the USMCA’s promises and laws… Are actually implemented.”

3M didn’t immediately reply to our request for comment.