On Thursday October 13, 2016, the Senate approved on a full vote the proposed bill to amend Articles 107 and 123 of the Mexico’s Federal Constitution on the administration of labor justice.

The relevant aspects of the bill are as follows:

  1. The Federal Conciliation and Labor Board will disappear and be replaced by a Federal Labor Tribunal. Local labor justice will be administered by state tribunals in each federal state.
  2. A federal decentralized and self-regulatory entity will be created with the following powers:
    1. to conduct conciliation proceedings in federal labor matters. Federal states will have similar entities.
    2. to register all union contracts.
    3. to register trade unions and administer all related regulatory proceedings.
  3. A call for a strike for the purpose of entering into a union contract, the trade union will have to prove that it is the certified union and that it has the support of the employees working for the employer being served.
  4. Secret and direct ballot for election of union representatives is introduced; as well as for the adoption of union’s resolutions.

The bill follows the recommendations of the International Labour Organization ("ILO") to strengthen employees’ rights and have access to a court system for employment dispute resolutions.

Under the legislative procedure, the bill will be remitted to the Chamber of Deputies for debate and approval, and, if approved, thereafter the bill will be sent to the state legislatures for their approval and then to Mexico’s President for signing it into law or for his veto. If the bill is passed, the Federal Labor Law should then be amended accordingly.

The labor area of this law firm will be available for any comments you may have on this matter.