Mexico: The secondary law on labor matters, aimed to implement the constitutional reform published in the Official Gazette on February 24, 2017, is still pending for the Senate’s discussion and approval

The secondary law on labor matters, aimed to implement the constitutional reform published in the Official Gazette on February 24, 2017, is still pending for the Senate’s discussion and approval. Such constitutional reform implies the creation of labor courts dependent of the Judicial Branch, as well as the regulation of the right to freedom of association, collective bargaining and transparency of collective relations.

On the other hand, within the context of the North America Free Trade Agreement (NAFTA)’s renegotiations, the United States of America and Canada have severely criticized Mexico due to its low salaries, the existence of ‘non-active CBAs’ or ‘drawer contracts’, the lack of a real union representation and the absence of independent labor justice, all wrongful trade practices that have refrained the labor reform.

According to the President of the Senate’s Labor and Social Security Commission, an extraordinary session period is expected to have place between July and August for the labor law to be approved and the replacement of the Conciliation and Arbitration Labor Boards by labor courts will be gradual.

The Mexican Bar Association started an Appeal proceeding (‘Juicio de Amparo’) arguing the unconstitutionality of the labor reform as it is out of the one-year term for its approval, provided in the second transitory article of the decree dated February 24, 2017, by virtue of which the constitutional reform became effective. This Appeal is still pending of resolution by the Supreme Court of Justice.