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Progress towards the Labor Reform Implementation

The Organic Law for the Federal Conciliation and Labor Registry Center is published, and its start of operations is announced for 2020.

A step was taken towards the implementation of the amendments to the Federal Labor Law (“FLL”) published on May 1st, 2019 in the Federal Official Gazette (“DOF”), specifically in relation with the creation of the Federal Conciliation and Labor Registry Center (“Center”).

This past Monday, January 6, 2020, the Organic Law for the Federal Conciliation and Labor Registry Center was published in the DOF, which establishes, among others, the following powers and functions of the Center:

  • It will register at a national level, all collective bargaining agreements (the “CBA”), internal work regulations and Unions, as well as all administrative procedures related thereto.
  • It will have at the federal level a conciliatory function in both individual and collective matters.
  • Assist Unions and workers in the procedures of the Union leaders’ election and will verify the fulfilment of the democratic standards and the applicable legal requirements.
  • It will summon and organize the voting for consultations upon workers request.
  • Issue the non-conciliation records in individual matters and the representation records in Union certification processes.
  • Verify the workers’ majority support in the CBA and their revision agreements, safeguarding the exercise of the free, direct, secret and personal vote.
  • Verify that the content of the CBA has been informed to the workers.
  • It will provide the documents and information related to the registration of CBA, wage scales, and listings of workers affiliated to the disputing Unions.
  • Disclose the Unions information and provide to people that request it, copy of the documents contained in the registered files.
  • It will establish a conciliatory management model and impose the corresponding fines for failure to comply the FLL.

With respect to the Center’s start of operations, the 2019 reform envisaged that this should be done within a period of no more than two years, starting from May last year.

In this regard, on January 6, Bulletin 004/2020 of the Ministry of Labor and Social Welfare was published, which indicates that the Center will begin operations in the last quarter of this year in ten states in Mexico.

Therefore, it is relevant that employers and Unions analyze if they currently comply with the new labor provisions, and in case they do not, implement the necessary actions.

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