Employment  I  April 27th, 2023

Legitimization of Collective Bargaining Agreements

When ratifying the United States-Mexico-Canada Trade Agreement, hereinafter (“USMCA”), Mexico became subject to Chapter 23 (Labor), which seeks to protect labor rights such as freedom of association and the right to collective bargaining. As a result of the foregoing, on May 1st, 2019, the Mexican Labor Law was amended in order to comply with the applicable provisions of the USMCA.

One of the most relevant amendments was the obligation for legitimization of the Collective Bargaining Agreements, hereinafter (“CBA”). This can be defined as the process of ratification of the contents of the existing CBAs submitted before the local and federal Labor Boards, through a personal, free, and secret vote of the employees. This process intends to identify which unions actually have the support of the employees they represent. It is understood that a CBA is duly legitimized if the majority of the employees vote in favor of the CBA and if the process was carried out in compliance with the provisions of the Federal Labor Law. If the CBAs entered into prior to the 2019 labor reform are not duly legitimized before May 1st, 2023, they will be deemed to be terminated. However, the employees will continue to enjoy all the rights and/or benefits established therein.

It is important to rely on expert legal advice to prevent contingencies in the process of legitimization and/or review of CBAs. Please do not hesitate to contact our team if you have any questions regarding this matter.