It will be difficult for unions to legitimize CCTs

Note published on June 24 in El Financiero, Negocios [Business] Section by Felipe Gazcón

The process for the legitimation of Collective Bargaining Agreements (CCTs), the term for which expires on the first day of May 2023, will generate a complicated situation for companies and unions, since out of the 550 thousand existing agreements in the country, at least 485 thousand will be in a first stage, without any union seeking to represent the workers,  Óscar de la Vega estimated.

The partner at the De la Vega & Martínez Rojas firm pointed out that the labor relations process with union organizations will become so complex that, in truth “only a few specific sectors will be the ones that are going to maintain high unionization .”

Additionally, he mentioned that the legitimation process has been very slow and, therefore, an extension is not ruled out, although this would require negotiation with the U.S. because the implementation deadline for 2023 arises from the USMCA.

“That would be seen as an alternative, but as of now, the termination of 495 thousand collective bargaining agreements is expected”, the expert stated.

He said that, currently, the number of workers that belong to a union, up until the first quarter of 2022, stands at 4 million 869 thousand 45 people.

The expert said that high-export sectors, which are priorities for the American government, “will have to comply, in an orthodox manner, with the reform in matters of freedom of association and collective bargaining.”

He explained that these are sectors that will necessarily be involved in rapid response mechanisms.