On May 1st, the Mexican government completed passage of a major labor reform bill allowing workers the right to bargain colelctively with employers through independent labor unions, without fear of retaliation or harassment. Workers in Mexico can now vote freely and elect their union representatives.
Part of the impetus for the passage of labor reform is the new trade deal to replace NAFTA. Then-Mexican President Enrique Pena Nieto promised to overhaul labor laws as part of the new USMCA trade deal. Labor reform in Mexico was supported by the Trump administration as a way to improve working conditions in Mexico, lowering the incentive for US manufacturers to move jobs south of the border.
Ironically, the party of labor unions, the House Democrats have not yet agreed to the passage of the USMCA as they believe the enforcement of the new labor laws doesn’t exist. Even more ironic is Democrat President Clinton supported the passage of NAFTA – an agreement that did not provide for any means for workers in Mexico to collectively bargain or organize labor unions. Since 1994 and then-President Clinton’s passage of NAFTA, the average factory worker in Mexico is just over $2.00 an hour.
If you have any questions how the new USMCA will impact your business, call/text David Hsu at 832.896.6288 or by email at firstname.lastname@example.org.