Dear clients and friends,

What happened at General Motors? Here is a simple explanation:

  • The Union called for a vote to carry out the legitimization of the Collective Bargaining Agreement (CBA), obtaining the majority of votes.
  • Under the USMCA, the U.S. Government filed a complaint, alleging diverse irregularities in the voting process and, as a consequence, the cancellation of free association and collective bargaining rights at the GM plant in Silao.
  • Independently of the complaint, among other measures, the Ministry of Labor resolved to reinstate the process of legitimization of the CBA of the plant and in such process, the majority of the Employees voted NO to the CBA.

The consequences of voting NO to the CBA are:

  1. All working conditions (salary and benefits) are preserved.
  2. The CBA is terminated, and the Union ceases to have ownership of the CBA.
  3. The Company is left without a Union and without a CBA.
  4. Any Union Organization may seek the representation of the Employees and the signing of a new CBA.

What should Companies pay attention to?

If the USMCA is violated, exporting companies, whether directly or indirectly, of any product or service, are in risk of having their export tariffs raised or even being prevented from exporting to the USA or Canada.

Therefore, planning and prevention is the best strategy. These are some of the actions we recommend:

  1. Conduct a Labor Compliance analysis aligned to the USMCA (which goes beyond Labor Authority inspections).
  2. Make a review and evaluation of your collective situation covering: labor climate, Union situation, geographical and industry sector environment.
  3. Prepare a mid and long term work plan that guarantees labor peace and stability.
  4. Pay attention and follow up on the complaints received in their whistleblower hotline.
  5. Have a labor contingency plan, applicable in cases of risk.

Remember: “Everything works until one day it stops working”.


Labor & Social Security

Javier Canseco
Ana María Becerra
Roberto Alvarez-Malo
Isaac Corral
Rogelio Sánchez
Perla Arreola

CategoryLegal Alerts

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