Labor and employment trends and recommendations 2019

For employers nationwide, it is very important to recognize trends in federal administration in order to prepare and navigate any change that might affect “business as usual” in Mexico. With Andres Manuel Lopez Obrador (AMLO) in office, a majority of his own party MORENA in Congress, and Luisa Maria Alcalde as the new Secretary of labor, there are some tendencies that must not be overlooked:

  1. - Federal Administration relies heavily on what has been christened as social justice as an end to validate progress and the fulfillment of campaign promises whilst alleviating the very objective need of a vast majority of Mexicans.

  2. - Labor and employment policies and change will be a crucial part of the agenda simply because any amendment, modification, or reform weighs heavily in the social well-being of our country. With an estimated total population of 125 million, there are 93 million citizens that are within the parameters of “working standard age” and therefore, there is no question why employment policies are vital.

  3. - Changes have already started to take place.

  4. - With the largest historical increase in minimum wage, 2019 has begun with an increase of 16.20% as compared to the minimum wage of 2018.

  5. - December 22, 2018, marked the day where a Labor Law reform bill was officially presented to the house of representatives by the president´s party, MORENA, which (as has been said) holds a majority in Congress.

  6. - There are pending modifications in the justice system, chiefly in labor judicial authorities, that will not necessarily affect the day to day operations of businesses nationwide, and are yet to be stablished once the reform to the labor law goes through the stages to become from a bill into law.

  7. - One of the biggest changes that will directly affect day to day operations includes the renewal of worker unions and collective bargaining as a way to better employment conditions in every establishment. Even though Mexico recognizes the right to unionize, there is a clear intent to give employees much more participation, and representation within their unions and the collective bargaining process with employers.

    Recommendations

  8. - Collective bargaining must not be regarded as risky or threatening by any account. Employers must learn to use every tool at hand as to guarantee that collective bargaining and HR strategies become an internal management tool that will be helpful to reach corporate goals.

  9. - Negotiations do not rely on...

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