Mexico’s Labour & Social Welfare Secretariat Will Protect Workers From First Brands Bankruptcy

ByMaría del Pilar Martínez

This article by María del Pilar Martínez originally appeared in the January 28, 2026 edition of El Economista.

The Ministry of Labor and Social Welfare (STPS) announced on January 28, 2026, the activation of an institutional support mechanism following the bankruptcy of First Brands in the United States. This financial situation has directly impacted maquiladora companies located in northern Mexico, including plants such as BPI Brake Manufacturing Juárez, Autolite, and Tridonex.

The impact is reflected in the closure of seven plants and staff reductions affecting more than 4,000 workers nationwide. The federal agency, in coordination with local authorities, has begun monitoring cases according to each industry’s jurisdiction to ensure compliance with current labor laws.

The founder of First Brands has been indicted by federal prosecutors for allegedly defrauding lenders out of billions of dollars before ‌the auto parts supplier collapsed into bankruptcy. Patrick James, who was also First Brands’ chief executive, was charged in a nine-count indictment made public on Thursday with running a continuing financial crimes enterprise, bank fraud, wire fraud and money laundering conspiracy.

The assistance operation integrates the powers of the Federal Attorney’s Office for Labor Defense ( Profedet ) and the Federal Center for Conciliation and Labor Registration (CFCRL) .

“The main objective of this intervention is to provide free legal advice and activate conciliation processes that ensure the payment of wages, benefits, compensation and respect for the social security rights of workers of companies such as BPI Brake Manufacturing Juárez, Autolite and Tridonex,” the agency explained.

The Mexican government indicated that these actions seek to offer legal solutions that guarantee labor justice after the declaration of insolvency of the foreign parent company.

To assist those affected, direct communication channels have been established through the Profedet hotline 079 and the CFCRL phone number 55 88 74 86 00. These contact points offer free specialized guidance to employees who need to initiate legal or institutional procedures.

The STPS reiterated that it will maintain oversight of the process to safeguard labor rights in the face of any situation that compromises the well-being of workers in the federal entities where First Brands subsidiaries operated.