Introduction
As the review of the United States-Mexico-Canada Agreement (T-MEC) approaches, Mexico’s labor sector is once again under the spotlight. Business leaders, unions, and the government are preparing for a new space of social dialogue. However, the exclusion of emerging unionism and demands from Washington signal a tense process with deep requirements.
Recent Developments
This week, business and union representatives met to agree on the creation of the National Social, Economic, and Environmental Council (Consejo Nacional, Social, Económico y Ambiental). Called for by Coparmex’s leadership, the Council aims to be a tripartite social dialogue space for joint proposal construction, addressing current and future challenges.
Notably, the negotiation table that President AMLO promised to business leaders but failed to deliver in his six years of tenure is now being set up by them, albeit with the physical presence of the Secretary of Labor, Marath Bolaños. There’s also an apparent effort to initiate dialogue by inviting a wide range of union organizations, including traditional ones (CTM, CROM, CTC, CROC, etc.) and opposition or independent ones like telecom workers, miners, university employees, among others.
Exclusion of Emerging Unionism
However, it’s regrettable that emerging unionism from entities like the Labor League, SINTTIA, SNITIS, AGT, and CFO has been left out. These organizations have either emerged or consolidated under the T-MEC and its Rapid Labor Response Mechanism (MLRR). In future efforts like the National Council, it’s crucial to remember that social dialogue is inherently inclusive and must be even more so with entities like these, especially if a palatable front is to be presented against the upcoming T-MEC and MLRR negotiations.
Anticipated Demands
The days are numbered, and it’s crucial for the government and Mexico’s labor sector to stop ignoring what the Trump administration, the U.S. Congress, and AFL-CIO unions will jointly demand to approve a revamped T-MEC. These demands include:
- Another labor reform in Mexico, deepening the existing one. Specifically, mechanisms ensuring effective implementation, free from any simulation by government, unions, or businesses.
- An extended MLRR, with greater intervention and sanction capabilities against labor violations, applicable to more strategically defined sectors for North American relations and competitiveness.
- Labor attachments with increased competencies and oversight resources over labor law proceedings. This could imply demanding inspection functions that Mexican inspectors have failed or neglected to carry out due to resource shortages.
- Effective accountability of unions and national confederations. How can union leaders, with millions in wealth and exclusive bank accounts in Mexico, the U.S., and Europe, exist in a country with widespread poverty among workers?
- No more government-union political alliances leading to power pockets, corruption pools, and regional strongmen that hinder free collective bargaining and stifle business competitiveness.
- Mechanisms and commitments to ensure contractual wage increases in Mexico, particularly in strategic industries like automotive, electronics, TICs, artificial intelligence, and transition industries (from mining to energy). While equalizing Mexican wages with those in the U.S. and Canada might be impossible, there will be demands for progress scales and minimum wage increase floors, so Mexico stops being a social-labor dumping ground for strategic industries. Could this be the $16 minimum set but not achieved by the T-MEC for automotive?
Key Questions and Answers
- What is another labor reform in Mexico? It refers to deepening the existing labor reform, with specific mechanisms ensuring effective implementation free from any government, union, or business simulation.
- What is an extended MLRR? It’s a broader Rapid Labor Response Mechanism with increased intervention and sanction capabilities against labor violations, applicable to more strategically defined sectors for North American relations and competitiveness.
- What are labor attachments with increased competencies? These are labor organizations with greater authority and resources to oversee labor law proceedings, potentially demanding inspection functions that Mexican inspectors have neglected due to resource shortages.
- What is effective accountability of unions? It means holding unions and national confederations responsible for their actions, addressing the discrepancy between union leaders’ wealth and the poverty of many Mexican workers.
- What does “no more political alliances between government and unions” mean? It implies ending partnerships that create power pockets, corruption pools, and regional strongmen hindering free collective bargaining and stifling business competitiveness.
- What are mechanisms and commitments for wage increases in Mexico? These are efforts to ensure contractual wage growth in Mexico, particularly in strategic industries like automotive, electronics, TICs, artificial intelligence, and transition industries. The goal is to prevent Mexico from being a social-labor dumping ground for these industries.
