Introduction
Discussing competitiveness and growth in Mexico by 2025 inevitably brings up a topic that, though uncomfortable, can no longer be ignored: the wear and tear on Mexico’s labor justice system.
The Rise of Labor Conflicts
Labor disputes between workers and employers are no longer exceptions but a reality that directly impacts the country’s productive structure. Recently, workers from the Conciliation and Arbitration Boards and Labor Courts suspended their duties, highlighting what many companies and lawyers already know: the workload is unsustainable, processes are overwhelmed, and urgent challenges face the system.
The Labor Reform of 2019
Five years after the 2019 labor reform, which aimed for more agile and efficient processes through specialized Labor Courts and Conciliation Centers, the system still operates at its limit.
Challenges in Conciliation Centers
Conciliation centers represent a positive step towards proposing solutions and preventing conflicts from escalating to courts. However, in many cases, conciliations fail to achieve the desired impact due to overwhelming conditions, insufficient staffing, limited resources, and sometimes inadequate training within a system still under consolidation.
The Impact of Insufficient Infrastructure
Before the reform, there were twenty special local Juntas in Mexico City. Today, only nine Labor Courts handle the same or even greater workload. This comparison clearly shows that the lack of personnel and infrastructure has only saturated the system, where conflicts accumulate, trials drag on, and the promise of swift justice faces a complex reality.
Consequences for Businesses and Workers
Companies continue to accumulate lawsuits as part of their daily operations. Having a hundred, two hundred, or even three hundred active lawsuits is no longer an extreme scenario but a daily reality, especially for businesses with high employee turnover or large-scale operations. Each lawsuit implies resources, time, operational wear and tear, and a constant risk that affects organizational stability and distracts legal teams from their primary function: preventing conflicts, ensuring compliance, and building healthy labor relationships.
Workers also face consequences. For those dealing with unjust dismissals, each month without a resolution represents economic and emotional uncertainty. Labor justice should be a path to regain stability, not an additional source of wear and tear. However, today, even those seeking to defend their rights find themselves trapped in a slow and saturated system that clearly needs reinforcement.
Normalizing Judicialization of Labor Relations
The concerning aspect is that this dynamic normalizes the judicialization of labor relations. Each lawsuit not only adds another case file to courts but also represents a missed opportunity to resolve the conflict directly, promptly, and without wear and tear. It’s clear that litigation is never a desirable scenario for either workers or companies.
The Need for Reflection and Shared Responsibility
The situation calls for reflection, not blame-seeking. Companies have a significant responsibility in conflict prevention by investing in compliance, reviewing contracts, correctly registering workers, paying legal entitlements, and fostering healthy work environments. This not only avoids lawsuits but also safeguards their operations.
Workers, too, must approach conciliation mechanisms better informed and prepared, understanding that even with differences or dissatisfaction, seeking agreements remains the most effective path.
Key Questions and Answers
- What is the current state of Mexico’s labor justice system? The system faces significant challenges, including overwhelmed courts and conciliation centers struggling with limited resources and staffing.
- How do labor disputes impact businesses and workers? Both face consequences, with companies experiencing operational strain and workers enduring economic uncertainty.
- What role do companies play in preventing labor conflicts? Companies can significantly reduce conflicts by focusing on compliance, proper worker registration, timely payment of entitlements, and fostering healthy work environments.
- How can workers better navigate the labor justice system? Workers should approach conciliation mechanisms well-informed and prepared, understanding that agreements are often the most effective resolution.
