On November 12, 2020, the President of Mexico, Andres Manuel López Obrador, sent a draft bill to dramatically change subcontracting (outsourcing) regulations applicable to private companies. If approved by Congress, the bill will significantly impact companies with outsourcing and insourcing (with dual
Join us for Part 3 of our webinar series on the USMCA, as we approach entry-into-force of the agreement on July 1, 2020. In this webinar, “USMCA: Labor Rules and Trade Remedies,” Baker McKenzie experts from the United States, Mexico and Canada will discuss how to prepare for enforcement under the Rapid Response…
With thanks to our Global Immigration & Mobility team for this alert.
The FY 2021 US H-1B Lottery is now complete and employers have been notified whether their requests to file H-1B Cap Subject Petitions were accepted under USCIS’ new electronic preregistration system. While one option may be to file an H-1B Cap registration request…
What has changed
On December 10, 2019, the United States, Canada and Mexico reached an agreement on a revised United States-Mexico-Canada Agreement (“USMCA”), which establishes a rapid response labor mechanism (“RRLM”) for dispute resolution for alleged violations of the right of freedom of association and the right to collective bargaining in these countries. The mechanism allows the US and Canadian governments to make claims against facilities in Mexico for potential violations of these rights, to the extent that the rights are established by Mexican law. The Mexican government may also file a claim for potential violations to these labor rights in the US or Canada, but only if the facility involved is under an enforced order of the National Labor Relations Board or the Canada Industrial Relations Board, respectively. This mechanism cannot be invoked for disputes of this nature between the US and Canada.
As of August 1, companies doing business in Mexico can anticipate that unions will move quickly to legitimize existing collective agreements under a new government-issued protocol. Among other steps, the process includes a vote by covered employees to determine whether they approve the terms of the agreement. Collective agreements must be legitimized by May 1,…
(With thanks to our colleagues in Mexico for this alert.)
On January 25, 2019, more than 45,000 employees from 45 different manufacturing sites in Matamoros, Tamaulipas initiated a strike, which was allegedly incited by an activist outside the region. Their demands were a 20% salary increase and a significant increase in annual bonus to MXN $32,251.40 (about USD $1,600) per employee.
(Thank you to our Baker McKenzie colleagues in Mexico for sharing this alert.)
As a result of a change in government leadership and recently signed laws and treaties, companies in Mexico now have an important “to do” for 2019: prepare to review any unions that are “on the books” and assess compliance in this new environment.
What are “White Unions”?
- White Unions in Mexico are usually employer-friendly unions that — due to current legislation deficiencies — can effectively bar entry of other unions who might otherwise attempt to gain a foothold in the workplace. They have little to no actual membership and do not actively represent workers. Historically, any union could petition for unionization without the need to prove the support of workers.
In recent years, joint employer liability has emerged as a persistent threat for companies who use franchise business models. Franchisors are increasingly facing claims brought by employees of franchisees for entitlements flowing from their employment. The outcome in these cases is unpredictable because the law is undergoing change. As such, the joint employer aspects of…
Join us for a breakfast briefing on March 27 in Palo Alto for an update on the latest trends and regulations impacting multinational employers in Latin America. Hear from leading practitioners in five key LATAM jurisdictions – Argentina, Brazil, Colombia, Mexico and Venezuela – as we address hot topics that employers are facing right now…
Baker McKenzie partner Kerry Weinger introduces Liliana Hernandez-Salgado from Mexico City to talk about employment laws in Mexico and give an overview of what has changed in 2017 as well as what we can expect for the year ahead.
- Companies doing business in Mexico must stay tuned for further developments related to outsourcing