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Deadline to legitimze the collective bargaiding agreements of Mexican companies

2 May 2023

As a result of the 2019 labor reform, labor unions in Mexican companies are required to consult the collective bargaining agreement (hereinafter “CCT” for its acronym in Spanish) so that workers can exercise their vote in a democratic manner and express their agreement or disagreement with the conditions set forth in the CCT.

The purpose of the legitimization of a CCT is to ratify the content of existing agreements that have been filed with the local and federal Conciliation and Arbitration Boards.

In this regard, unions must register the consultation for the legitimization of their CCT before May 1, 2023.

However, the CCT will be terminated when any of the following events occur:

a) If the union did not register the consultation for legitimization of the CCT before May 1, 2023;

b) If the union registered the consultation, but did not carry out the vote of the workers before July 31, 2023;

c) If the vote of the workers is carried out, but the majority of the votes rejects the content of the CCT.

The consultation process for the legitimization of collective bargaining agreements is a way for the Ministry of Labor and Social Welfare to terminate all collective bargaining agreements that were not reviewed or put to a vote of the workers.

Such consultation process must be carried out through the local and federal Conciliation and Arbitration Boards, which will be carried out in a democratic manner through voting by the workers of Mexican companies.

A favorable vote of the majority of the workers is required in order for the Federal Center for Labor Conciliation and Registration to issue its certificate of legitimization of the CCT in question.

What would be the consequences if a CCT is not legitimized?

1. Companies may not decrease the wages, rights and benefits established in the CCT. Additionally, if the CCT that has been terminated establishes shared obligations between the company and the union, the employer will be bound to continue providing those same benefits at its own expense.

2. Labor relations between employers and their employees may not be modified, with the understanding that seniority, Christmas bonus, vacations, and other benefits that the employees may have, shall continue to be respected at all times.

3. Employers may no longer deduct union dues from their workers unless the worker notifies the human resources area in writing of his or her desire to continue making its union dues.

4. Companies may not grant preferential treatment to workers (permits, leaves, benefits) who are members of the union, with the understanding that equal conditions must be respected for all workers.

5. Employers may not negotiate the labor conditions agreed upon in the CCT that was terminated, unless such negotiation is carried out with another union that has the Certificate of Representativeness issued by the competent authority.

6. Employers shall be prohibited from demanding or pressuring workers in any way to remain affiliated to a union whose CCT has been terminated; the workers’ freedom of association shall prevail.

7. A union whose CCT has been terminated may not call a strike or threaten to suspend work. The right to strike may only be exercised by a union with a duly legitimated CCT or that which has a valid Certificate of Representation.

8. Even if the CCT has been terminated, the union will continue to operate, and its members will continue to have the rights and obligations set forth in its bylaws; the union will continue to operate under equal conditions.

9. Employers must negotiate a new CCT with another union that has the support of at least 30% of the workers and, additionally, that has a Certificate of Representativeness.

To know in detail if the collective bargaining agreement of your company’s union was legitimized, you can access the following link: https://legitimacion.centrolaboral.gob.mx/Listado_Legitimaciones.aspx; for any further and detailed assistance, please do not hesitate to contact us.

In light of the above, in Bravo Abogados we would be happy to answer any question you may have regarding this legal alert.

52-81-24748538 
www.j-bravo.com
Blvd. Antonio L. Rodríguez 3000, Colonia Santa María, 5to piso, Interior 501 Torre Albia, C.P. 64650 Mty, N.L., México T.

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