Establishing a positive working environment and understanding union dynamics at specific facilities emerged as keys for successful labor strategies during Mexico in HR Policy Global’s webinar examining recent developments with Mexican independent unions.
Ed Thompson, Global Head of Labor & Employee Relations at Caterpillar, and Dante Trevedan, Senior Counsel at Norton Rose Fulbright, both emphasized that, contrary to U.S. policy, Mexican labor law prohibits employers from educating employees on the nature of unions or whether they should or should not join unions. However, employers in Mexico are advised to work with their incumbent unions on contract ratification process prior to April 2023. If a union contract has not been ratified by then, it will automatically expire. “The Mexican Labor Board is very determined to carry out its commitment on USCMA and ILO Conventions and will not likely give any extension to any of the deadlines,” noted Mr. Trevedan.
The panelists acknowledged that the 2019 union reform has made huge progress, but a lot of uncertainties still exist. On the question of what protections employers have when another union tries to interrupt or take over after an incumbent union contract has been ratified, Mr. Trevedan pointed out that technically multiple unions can represent one unit if they are legally certified and receive support from 30% of the workforce.
On the influence of international or global unions, Tom Hayes, Executive Director at the Brussels European Employee Relations Group (BEERG), noted that it’s unlikely that they will carry out any traditional union activities. However, companies could face pressures from the unions’ corporate campaigns globally. Additionally, international unions can also leverage human rights due diligence laws to apply pressure to companies’ global value chains.
When asked whether a union avoidance strategy is applicable or advisable for employers in Mexico, the panelists agreed that even though it’s challenging, positive employee relations and proper frontline management will encourage employees to directly interact with employers and refrain from seeking external representation.
Outlook: HR Policy Global will continue the Mexican Union Reform series as issues evolve. In the meantime, we are forming a working group focusing on emerging workplace issues in Mexico, including union and labor relations, USMCA, women in the workforce, and informal workers. We will have regular calls and discussions. If you are interested, please send me an email at wdong@hrpolicy.org.