On April 29th, 2019, the Chamber of Senators approved the Decree amending, adding and repealing a number of provisions of the Federal Labor Law (LFT, in Spanish). It is expected that this Decree will be published in the DOF (Federation Official Gazette) on May 1st, 2019.
The following are some of the essential aspects of the LFT reform:
1. Justice and Labor Conciliation.
The creation of an autonomous decentralized body called the Federal Center for Labor Conciliation and Registration (CFCRL, in Spanish), a public body that will manage and be in charge of the conciliation processes to settle disputes between workers and employers, between workers and Unions or among Unions. It will also be responsible for registering, at a national level, collective agreements, industry-wide labor agreements, internal work regulations and Union organizations.
2. Freedom of association.
Requirements needed to comply with the Unions’ statutes were modified in order to guarantee the democratic election of the Union’s board, which must be carried out by direct, personal, free and secret vote.
CFCRL was given the responsibility to publish the information of the Unions’ registers and to keep it updated and available.
Accountability was stipulated as mandatory for the Unions’ board. The board must present a report every six months before the Assembly and copy of this report must be distributed among every member of the Union.
3. Human Rights and Gender Perspective.
The principle of equality and non-discrimination was reaffirmed, and a work environment free of discrimination and violence was guaranteed. Acknowledgment of the differences between men and women was also reinforced in order to obtain their equality before the law.
The obligation of the employer to implement, in agreement with the workers, a protocol to prevent discrimination based on gender and to attend cases of violence and sexual harassment was added.
In the case of dismissal of women that are victims of work discrimination, such as discrimination due to pregnancy, sexual orientation or gender identity, as well as in the case of child labor, the Labor Court will take the precautionary measures necessary to prevent the cancellation of fundamental rights such as social security, for as long as the labor trial takes to dictate a resolution or decrees are establishes for the detention of the corresponding people. The plaintiffs must accredit the existence of evidence giving the Court basis for reasonable doubt or the presumption of the acts of discrimination that they assert.
4. Domestic workers.
It was added that it is the employer’s obligation to enroll domestic workers to the Mexican Social Security Institute and pay the corresponding fees.
5. Unit of Measurement and Update (UMA, in Spanish)
The application of sanctions based on the minimum wage was changed to a new reference, the UMA.
6. Collective labor agreement
Employer´s obligation:
It was added as an employer’s obligation to give its workers a free copy of the collective labor agreement or of its review within 15 days after the agreement is registered at the CFCRL.
Certificate of Representativeness:
In order to request the entering into a collective labor agreement, it will be essential for the Union to obtain the Certificate of Representativeness from the CFCRL. The request to obtain the Certificate of Representativeness must be accompanied by a list that certifies that the applicant Union has the support of at least 30% of the workers covered by the collective agreement. The list must include name, CURP, date of hiring and handwritten signature of the workers who support the applicant Union.
CFCRL, within a period no longer than 3 days from the presentation of the application, will publish on its website the notice of application for the Certificate of Representativeness, will set such notice in the work center and will ask the employer to place it within the work center to inform the workers and any other Union that wishes to obtain the Certificate of Representativeness.
If the application were to be accepted, said Union must also file the list proving that it has the support of at least 30% of the workers covered by the collective agreement. It will not be an impediment for the application to be accepted that the names of the workers appear in two or more lists submitted by the unions.
If more than one Union contends to obtain the Certificate of Representativeness, the right to negotiate and execute the collective contract shall correspond to the one that obtains the greatest number of votes as per the provisions of article 388 of LFT. Workers dismissed during the 3 months prior or subsequent to the presentation of the application form will be part of the list.
Registration of the initial collective agreement or revision agreement:
For registration of an initial collective agreement or revision agreement, CFCRL will verify that its contents are approved through personal, free and secret vote by the majority of its workers.
If the initial collective labor agreement or revision agreement does not have the support of the majority of its workers, the union may:
a) Exercise its right to strike, in case the negotiated extension has elapsed, and
b) Extend or protract the pre-strike period to continue with the negotiation and make a new consultation to reach an agreement.
Collective contract review:
Every two years, during the relevant contractual review as per the provisions of article 399 of LFT, the agreement to review the collective contract shall depend on the approval of the majority of workers.
7. Validity and deadlines.
Validity of Amendment:
The Decree amending, adding, and repealing a number of provisions of LTF, among other laws, comes into force the day after its publication in DOF.
Start of CFCRL operations:
CFCRL will start operating for the registration of union associations and collective labor agreements within a period of no more than two years after the Decree comes into force.
The day following the suspension of the registration service of the Conciliation and Arbitration Boards, the Ministry of Labor and Social Welfare and, where appropriate, the Executive Powers of the States, will begin operating CFCRL.
Term where the Local Conciliation Authority and Local Courts start operating:
The Local Conciliation Centers and the Courts of the Judicial Power of the States will start operating, at the most, 3 years after the Decree comes into force.
Beginning of operations of the Federal Conciliation Authority and Federal Courts:
Within 4 years, at the most, after the Decree comes into force. Each judicial circuit will start operating in the order and sequence in which it is determined in the declarations issued by the Senate of the country.
Issues in process:
Procedures in process before the Ministry of Labor and Social Welfare and the Federal and Local Conciliation and Arbitration Boards will be concluded in accordance with the provisions in force at the time they were initiated.
Matters initiated after the Decree:
The Federal and Local Conciliation and Arbitration Boards, and the Ministry of Labor and Social Welfare will continue to be informed of the individual, collective and registry procedures that will be initiated after the Decree comes into force, and until the federal and local courts and Conciliation Centers start operating.
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