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Expert Board on Mexican Labor Reform Tells Congress Reform Is Incomplete

The Independent Mexico Labor Expert Board said it is not prepared to say that Mexico is not in compliance with the labor obligations under USMCA, given the steps the government is taking to reform the labor laws. But, with barely more than a year before the deadline to give all workers the chance to vote for independent unions, "we are increasingly concerned that the transition period for full implementation of Mexico’s labor reform will end next May with large segments of the old protection contract system still intact, including in critical manufacturing sectors and their suppliers."

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The board, which was ordered to report to both Congress and the administration's interagency labor committee, also wrote in its March 20 report, "The unfortunate truth is that little has changed in the overwhelming majority of Mexican workplaces, including key manufacturing industries in critical supply chains. There is little indication that workers feel empowered by the new legislation or are even aware of it."

Three of the 11 board members did not join in the recommendations of the board, saying that their legislative mandate did not include recommendations.

But those recommendations include calling on Mexico to require votes for new unions to be conducted by government officials, organize votes by sector, ensure active monitoring and provide proper investigation of complaints.

They said the U.S. government should urge Mexico to make sure that the Federal Center for Concilation and Labor Registry, an independent institution created to oversee labor rights implementation, is providing "meaningful oversight and verification" of claims when more than one union worker claims support. "Recent experience in the election at GM Silao indicates that the Federal Center has not fulfilled its obligation to verify claims of worker support, allowing unrepresentative unions to appear on union representation ballots," the report added.

The recommendations said the U.S. government should urge Mexico to hire more labor inspectors and Federal Center verifiers, and that the U.S. should work to make sure that Inter-American Development Bank funds approved to support the implementation of labor reform in Mexico "are used for that purpose and that additional funds are allocated if needed."

Other recommendations included the end of violence against workers, promoting transparency of union contracts to workers, monitoring prospective amendments to Mexican Labor Law, and increasing and focusing on U.S. funding to build worker capacity.

"The US Government and its representatives in Mexico should take every opportunity to send a strong message to companies producing goods and services in Mexico for export to the US market that there will be no more 'business as usual' when it comes to respecting workers’ rights to organize and bargain," the report said. "... The actions of the [Interagency Labor Committee] in advancing cases under the Rapid Response Labor Mechanism are important steps in the right direction but will require ongoing and consistent reinforcement."