New Times And New Regulations: An Update On Labor Law In Mexico - Employment and HR - Mondaq Mexico - Mondaq Business Briefing - Libros y Revistas - VLEX 775286333

New Times And New Regulations: An Update On Labor Law In Mexico

Author:Mr Pietro Straulino-Rodriguez
Profession:Ogletree, Deakins, Nash, Smoak & Stewart

Mexico is in a new era when it comes to labor law, with several significant developments affecting the country's labor landscape.

On September 20, 2018, Mexico ratified the International Labour Convention's Convention 98, endorsing the right of union members to organize and engage in collective bargaining negotiation. Then, on November 30, 2018, President Donald Trump, President Enrique Peña Nieto, and Prime Minister Justin Trudeau signed the United States-Mexico-Canada Agreement. This agreement increases labor regulations by including a labor chapter (Chapter 23). On December 1, 2018, Andrés Manuel López Obrador took office as Mexico's president. His approval rates and support from the population have only increased since then. He is promising to fight corruption and help the underprivileged part of the Mexican's population.

In December 2018, Mexico was divided in two geographical zones: the Free Northern Border Zone and the rest of the country. After the application of new legal minimum wages in Mexico's Free Northern Border Zone, effective January 1, 2019, substantial conflicts (strikes and illegal work stoppages) arose in Matamoros, Tamaulipas. Groups of employees, led by activists, stopped operations in at least 45 "maquiladoras," requesting a 20 percent wage increase and an extraordinary annual bonus of $32,000.00 pesos (approximately USD $1,641.00) per employee. Reports indicate that 43 plants in the region agreed to those demands and 2 intend to close operations, firing approximately 1,500 employees each. Another 26-29 plants are still evaluating what to do next.

This movement was initiated by an activist from Ciudad Juarez, Chihuahua, who incited the employees to push against the companies and their union leaders with illegal work stoppages. This is not a movement initiated by the unions or their leaders but by the employees under the influence of third parties (at the end, unions had to file to strike at their representatives demands). The aforementioned activist is a lawyer who has created many labor issues for many large employers in Ciudad Juarez, Chihuahua. The activist utilizes social media and publishes messages with information about labor issues, compensation, overtime, holiday pay, work hours, etc., and is currently convincing employees to follow her by promising them that they will obtain better salary and benefits.

Additionally, new and important players are currently "rattling the cage" in order to break the status...

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