Understanding the Participation of Workers in Company Profits (PTU)
The Participation of Workers in Company Profits (PTU) has become a union tool to gain members or sympathizers and pressure companies facing strike threats.
The PTU Mechanism
By law, companies must pay profits (PTU) to employees by May of each year. This obligation has been exploited by union leaders, making workers believe they can receive significant amounts without considering the company’s ability to fulfill this obligation, according to Jorge Sales, a partner at Sales Boyoli.
Reforms and Their Impact
The 2019 labor reform and the subsequent 2021 subcontracting reform created this situation, as the absence or reduced PTU payments became a union flag. Óscar de la Vega from D&M Abogados explained that the 2021 subcontracting reform increased worker participation in company profits, sometimes disproportionately, leading to the amendment of Article 127 in the Federal Labor Law. This established various caps on PTU payments, such as three months’ salary or the average of the last three years worked by the employee.
However, some unions have pressured companies to disregard these legal caps through strikes, despite the Supreme Court of Justice of the Nation ruling that the Article 127 caps were constitutional.
Company Responses
In response, companies have negotiated bonuses instead of PTU with unions in workplaces where profits aren’t generated, maintaining labor peace. According to the Secretaría de Trabajo y Previsión Social (STPS), in 2020, 89,038 companies paid PTU, rising to 180,870 companies in 2023, benefiting 13.9 million workers.
- Average PTU per worker: 6,999 pesos (2020)
- 11,557 pesos (2021)
- 14,024 pesos (2022)
- 14,748 pesos (2023)
The STPS conducts special inspections this month to identify companies failing to pay PTU to their workers.
Recommendations for Companies
- Involve the union from the PTU process start.
- Inform employees about additional costs preventing PTU distribution through financial and HR departments for timely awareness.
- In workplaces with active union presence, design a strategy with the general secretary. The union can help contain any issues.
- Educate employees on PTU concepts, calculation factors, integration, and interpretation of the pay stub.
Key Questions and Answers
- What is PTU? Participation of Workers in Company Profits (PTU) is a legal obligation for companies to distribute profits among employees.
- Why is PTU a union tool? Unions use PTU to gain members, pressure companies, and negotiate better conditions for workers.
- What are the legal caps on PTU? Article 127 of the Federal Labor Law establishes caps, such as three months’ salary or the average of the last three years worked by the employee.
- How have companies responded to PTU pressures? Some companies have negotiated bonuses instead of PTU with unions to maintain labor peace.
- What are the average PTU amounts per worker? In 2020, it was 6,999 pesos; in 2021, it rose to 11,557 pesos; in 2022, it was 14,024 pesos; and in 2023, it increased to 14,748 pesos.
