Introduction to Labor Dispute Resolution Centers in Mexico
In 2019, the reform of the Mexican Federal Labor Law (LFT) transformed labor justice by establishing the Federal Center of Conciliation and Labor Registry (CFCRL) along with local centers. These centers play a crucial role in resolving labor conflicts through dialogue and agreement between parties, offering alternatives to traditional court proceedings.
The Federal Center of Conciliation and Labor Registry (CFCRL)
The CFCRL is the authority for workers and employers to settle their disputes. It has offices in every state across the country, while local centers are under the jurisdiction of each entity’s executive branch. These centers aim to facilitate negotiations and reach agreements, preventing labor conflicts from escalating into costly court battles.
Local Labor Dispute Resolution Centers
According to the LFT, each Conciliation Center can have as many delegations as deemed necessary. They possess technical, operational, budgetary, decision-making, and management autonomy. These centers are responsible for processing necessary tramites before workers and employers present their cases to the newly created labor tribunals following the 2019 reform.
Determining Federal or Local Conciliation Center
A common question among workers is whether to visit a Federal or Local Conciliation Center. Katia Everardo, a labor relations specialist at Abarca y Asociados, clarifies that every federal entity must have both local and federal centers for workers and employers to approach.
“Workers often ask, ‘Which one should I go to?’ It depends on the industry branch of the company you work for, not the worker’s job functions. You should go to either a local or federal conciliation center based on the company’s industry,” Everardo explains.
Industry Classification
Article 527 of the Mexican Federal Labor Law outlines various industrial branches under federal jurisdiction. Some of these include:
- Textile
- Electrical
- Cinematographic
- Mining and Metallurgical
- Sugar
- Petroleum and Petrochemical
- Cement and Lime
- Automotive (including mechanical and electrical parts)
- Chemical (including pharmaceuticals and medications)
- Paper and Cellulose
- Vegetable Oils and Fats
- Food Production (including packaged, canned, or sealed products)
- Beverage Production (including encased or canned beverages)
- Railway
- Basic Wood Industry (including sawmills and wood-based products)
- Glass Manufacturing (including flat, smooth, or engraved glass and glass containers)
- Tobacco Processing (including the refinement or manufacturing of tobacco products)
- Banking and Credit Services
Non-listed Industries and Local Centers
Emily del Carmen Sutro, a compliance labor specialist, explains that the CFCRL handles various tramites such as registering associations, unions, statutes, and collective labor contracts. Industries or sectors not listed in Article 527 of the LFT should approach local conciliation centers.
Examples and Key Points
Katia Everardo provides an example: “A pharmacy that sells its own brand of medications falls under federal jurisdiction because it manufactures the drug. If a pharmaceutical company only distributes various brands without manufacturing its own medications, it falls under local jurisdiction as a distributor.”
The distinction between federal and local centers depends on the company’s business, not the worker’s functions. Del Carmen Sutro emphasizes that conciliation centers should be approached when labor rights are violated. Issues like discrimination, harassment, workplace violence, child labor, and forced labor do not require conciliation but should be taken directly to labor courts.
Uncertainty Regarding Industry Classification
If a worker is unsure about their industry’s classification, Katia Everardo recommends visiting the nearest local center to receive guidance on which center—federal or local—is appropriate for their case.
Workers have the right to receive free information on which center can assist them and request consultation or audience services. Both federal and local centers provide free legal assistance through the Procuraduría de la Defensa del Trabajo.
Challenges Facing Labor Conciliation Centers
Del Carmen Sutro highlights that a significant challenge for Mexican labor conciliation centers is their saturation. Investing in this new labor justice system and providing necessary measures will allow it to thrive.
