Contractual negotiations in 2022 will be complicated: specialists

Note published on December 5 in El Economista, Empresas [Companies] Section by María del Pilar Martínez.
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Óscar de la Vega, directing partner of the De la Vega & Martínez Rojas Firm said that, given that the Federal Center for Labor Conciliation and Registration (CFCRL) is already in operation, initial collective bargaining agreements as well as comprehensive revision agreements must be approved by the majority of the workers covered by said agreements through the personal, free, secret and direct vote of the workers, for registration and deposit in the aforementioned Center.

The negotiation of collective bargaining agreements – in regard to salaries and contractually – will be complicated in 2022, not only because a high inflation is projected, but because the minimum wage establishes a direct increase of 9%, a percentage that, in many cases, is adopted by union organizations, explained specialists in labor matters.

This, “could cause serious pressure on the labor sector if inflation

exceeds 7% and as a result of the increase to the minimum wage; to which we must add the significant reforms to the Federal Labor Law on this matter, which are already in force”, said Óscar de la Vega, directing partner of the De la Vega & Martínez Rojas Firm.

He explained that given that the Federal Center for Labor Conciliation and Registration (CFCRL) is already in operation, initial collective bargaining agreements as well as comprehensive revision agreements must be approved by the majority of the workers covered by said agreements through the personal, free, secret and direct vote of the workers, for registration and deposit in the aforementioned Center.

For his part, Luis Manuel Guaida, of Guaida y Asociados, said that the 9% agreed upon for 2022  as an increase for the minimum wage will, without a doubt, “have a direct effect on the position and expectations of the unions. They will seek to obtain increases in the tabulators of the collective bargaining agreements that they manage in a percentage that is higher than this number.”

Meanwhile,  Germán de la Garza de Vecchi, Leading Partner of Labor Services at Deloitte México, pointed out that the majority of contractual wage negotiations are conducted in the first quarter of the year, which makes it of vital importance that companies work with the union, in a coordinated manner, on which are the actual possibilities of the company to grant increases, “we know that some of them are returning to the negotiations that were put on hold due to the pandemic, and new rules must be abided by – due to the labor reform – but the finances of employers must also be looked after.”

Data provided by the Department of Labor and Social Welfare (STPS) inform that 37.4% of all salary reviews of collective bargaining agreements at the local and federal level were conducted between January and March: and, as of the month of August, revisions have benefited 2 million workers, with a nominal average increase of 5.6% and a real increase of 0.54 percent.

The Mercer consulting Firm reported at the time that a year-end closing with 4.7 % salary increases and a 6.28 %inflation is expected. By May 2022, the perspective shows a salary increase of 4.8 % with an inflation of 3.7 % and an economic growth of 2.9 % of the GDP.

It is worth noting that the National Commission on Minimum Wages (Conasami) held on December 1, unanimously agreed to increase the minimum wages from 141.70 to 172.87 pesos across the country.

In the North Border Free Zone, the wage of 213.39 pesos was increased to 260.34 pesos.

In consequence, the increase to the general and professional minimum wages is of 22%, an increase that will be applied as of January 1, 2022.