As of November 3, 2021, Collective Bargaining Agreement (CBA) revisions that occur in the states of the Mexican Republic that belong to Stage 2 of the New Labor Justice System, will have a new mechanism that consists of:
- The Union and the Company will hold negotiations for the revision of the CBA.
- Once the terms of the revision are agreed with the Company, the Union administering the CBA will give notice to the Federal Center for Labor Conciliation and Registration (one of the new Labor Authorities) informing that the approval of the contract’s content will be consulted with the Employees.
- The notice must be given at least ten days prior to the consultation, must indicate the date, time and place where the Employees will be consulted through personal, free and secret ballot, and must attach a copy of the negotiated contract or agreement signed by the parties.
- In the event that the agreement is approved by the majority of the Employees, the agreement for the revision or modification of the CBA will be executed before the Registration Authority, the Court or the appropiate Conciliation Center, as applicable.
- Once the agreement is approved by the competent authority, it will become legally effective.
- In the event that the revision agreement does not have the support of the majority of the Employees, the Union may:
(a) Exercise its right to strike, in case it has promoted the corresponding summons, or,
(b) extend the pre-strike period in order to continue with the negotiation and submit the new agreement with the Company to a new consultation process.
It should be remembered that the outbreak of a strike paralyzes all the Company’s activities.
In order to avoid contingencies it is important to make an adequate planning of the revision of the CBA of your Company.
