Official Gazette of the Federation

in Aug 09, 2018

To: Clients and Friends

A decree amending Sections 107 and 123 of the Mexican Constitution on certain labor matters was published today in the Official Gazette of the Federation (the “Decree”). Below is an outline of the relevant provisions.

(i) Whenever a union attempts to force an employer to enter into a Collective Bargaining Agreement, it must evidence that it has the employees’ representation. In the past, this legal requirement did not exist and it was only necessary for the union to file a request for a strike, even without the representation of any of the employees.

(ii) The resolution of disputes and controversies among employers and employees, will be in charge of labor courts (previously known as Conciliation and Arbitration Boards), which will now be part of the Federal Judiciary. Currently, Conciliation and Arbitration Boards administratively depend in the Federal Jurisdiction from the Ministry of Labor (a part of the Federal Executive branch) and in the local jurisdiction from Local Governments (State Governors), their resolutions are adopted by the majority vote of their three representatives (government-employers-employees).

(iii) Rulings by Labor Courts must comply with principles of legality, impartiality, transparency, autonomy and independence.

(iv) Before appearing at the Labor Courts, employees and employers must attend a mandatory conciliation procedure, the basis of which will be established by applicable law and include a sole mandatory hearing.

(v) On collective negotiations, procedures and requirements shall be free and must guaranty the following principles:

  • Representation of union organizations;
  • Certainty on the execution, recording and registration of Collective Bargaining Agreements;
  • For the resolutions of conflicts among unions, the request for entering into collective bargaining agreements and the election of union leaders, employees’ vote shall be personal, free and secret; and
  • For the election of union leaders, the by-laws of the corresponding union may provide the procedure as long as it is in accordance to the law.

(vi) In addition to those existing today, the following matters shall be of competence of Federal Labor Authorities:

  • The recording of unions and collective bargaining agreements;
  • Participating in conflicts which impact two or more States;
  • Collective Bargaining Agreements which have been declared mandatory in more than one State;
  • Employers’ obligation on education matters; and
  • Employers’ obligation on training and instruction; as well as safety and hygiene.

(vii) The Decree will enter into force on February 25, 2017. The Federal Congress and the Legislatures of each state must implement the necessary legislative changes to comply with the contents of the Decree within a year from February 25, 2017.

With respect to pending cases at the Conciliation and Arbitration Boards, all files and documents relating thereto must be transferred over to the Labor Courts and Conciliation Centers.

If you have any questions about this Client Alert, please contact

Juan I. Tejedo Moreira
juan.tejedo@gmt.mx

Client Alert is published by GarcíaMingo & Tejedo, S.C., as a news reporting service to clients and other friends. The information contained in this publication should not be construed as legal advice. Should further analysis or explanation of the subject matter be required, please contact the attorney with whom you normally consult.