Political Context and Labor Relations in
Mexico
Input to the Conference
„Union Coordination in the Automobile Industry –
Building Briges“
Mexico City, September 30 - October 3, 2013
Thomas Manz, FES Mexico
March
2011 2013
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– AG– Mexico
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Historical Origins of the Mexican Labor
Relations
• The Mexican Revolution from 1910-1920 had a formative
impact on the labor relations;
• A mayor result of the Revolution was the institutionalization
of important labor rights: 8-hour work day, freeedom of
strike, minimum wage, etc.
• A political result of the Revolution was the establishment of
an authoritarian welfare state („estado social autoritario“)
with a dominant role of the Institutional Revolutionary Party
(PRI – Partido Revolucionario Institucional) that ruled
Mexico without interruption from 1929 to 2000
• This authoritarian welfare state could combine up to the
1970 economic progress with social improvements
(„milagro mexicano“);
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Characteristics of the Mexican Labor
Relations (1)
Key charactristics of the Mexican Labor Relations were
shaped in the beginnings of the 20th century, and are valid
until today:
 the corporative structure:
• tight linkages between trade unions and state resp. the
dominatn political party (PRI),
• involvment of labor organizations in tripartite structures
(arbitration panels, administrative boards of social security
system, minimum wages committees ,etc.)
• the „corporative pact“: a trade-off between social benefits
and industrial peace
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Characteristics of the Mexican Labor
Relations (2)
 An authoritarian and hierarchical
organization:
 Executive Committees are often
appointed by acclamation, not by free
and secret ballots
 Little personnel renovation („lifetime
leaders“) and gerontocracy:
Fidel Velazquez was CTM General
Secretary from 1941 up to his death in 1997
in the old age of 97; the present CTM
General Secretary Joaquin Gamboa Pascoe
is 85 years old;
 Nepotism and cliquism
 Corruption (case of Esther Elba
Gordillo)
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Characteristics of the Mexican Labor
Relations (3)
 A strong state interventionism:
 A compulsive registration of labor organization by the
authorities, the so-called „toma de nota“
 Interventions in internal processes (elections, etc.)
 Control over registers of trade union members and information
about collective agreements
It was not before 2007 that the Mexican Labor Ministry accepted the
rule of the National Transparency Law that declared collective
bargaining agreements as public information.
 Instaed of independent labor courts: tripartite arbitration
panels („Juntas de Conciliación y Arbitraje“) with a dominant
position of state representatives
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Characteristics of the Mexican Labor
Relations (4)
Other major characteristics of the Mexican labor relations are:
 The strong fragmentation of the trade unions:
 39 confederations and national organizations
 in the private sector: about 2,500 organizations
 Mainly company unions and occupational unions
 A low rate of unionization:
 4.6 million members (more than 50% in the public sector)
 10% of the labor force
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The Mexican Trade Union System (1)
In the fragmented Trade Union System , at least 4 main
organizational models can be differentiated:
 The corporative or „official“ trade unions
 The independent trade unions
 The yellow organizations
 The „simulative“ trade unions
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The Mexican Trade Union System (2)
 The corporative or „official“ trade unions:
 with official registration (toma de nota)
 close relationship to the PRI
 concentrated in the umbrella organization „Congreso del
Trabajo“
 little committment to the bargaining work on the shop floor
 major organizations:
 Confederación de Trabajadores de México (CTM): 750.000 members
 Federación de Sindicatos de Trabajadores al Servicio del Estado
(FSTSE): 700.000 members
 Confederación Revolucionaria de Obreros y Campesinos (CROC):
80.000
 Confederación Regional Obrera Mexicana (CROM): 30.000
 CTM with important representation in the Automotive
Industry:
 Ford, GM, Chrysler, Nissan Aguasc/EDOMEX, VW Silao, MAN
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The Mexican Trade Union System (3)
 The independent trade unions:




without official registration (toma de nota)
no affiliation to the PRI
real bargaining on the shop floor
major organizations:
 Unión Nacional de Trabajadores
(UNT): 450.000 members
 Frente Sindical Mexicano (FSM)
 Miners Organization (SNTMMSRM)
 minor representation in the Automotive
Industry:
 VW Puebla, Nissan Cuernavaca, Audi
Puebla
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The Mexican Trade Union System (4)
 The yellow trade unions:





with official registration (toma de nota)
mainly in the north of the country (Nuevo León)
no affiliation to the PRI, but support by the conservative PAN
subordinated to corporation interests
major organization:
 Alianza Sindical Mexicana (ASM): 1 Mio. memebers
 minor representation in the Automotive Industry:
 Mercedes Benz in Nuevo León
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The Mexican Trade Union System (5)
 The „simulative“ trade unions:
 personalities in possession of a „toma de nota“ (official
concession)
 no real representation on the shop floor
 negotiate „Protection Contracts“:
 Agreements designed for employer protection without approval by
the empolyees
 major organization:
 Federación Sindical Coordinadora Nacional de Trabajadores
(FSCNT)
 minor representation in the Automotive Industry:
 Peugeot
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The Mexican Bargaining Culture (1)
 Collective bargaining mainly take place on the plant level
 Very little experience with sector agreements
 Underdeveloped coordination and cooperation among trade
unions with regard to bargaining processes:
• recently: creation of the Conferencia Nacional de Sindicatos
de Trabajadores del Sector Automotriz (CONSTA) – an
informal coordination committee
 Entitled to bargain collective agreements is the labor
organization with the strongest representation in the plant
March
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The Mexican Bargaining Culture (2)
 Strong prevalence of „Protection Contracts“:
 Estimates talk about 80% of all bargaining
agreements in Mexico
 negotiated by „simulative“ organizations without real
presence on the shop floor
 stipulate mainly rules and benefits yet granted by
law
 agreed without knowledge of the workers
 International Campain against „Protection
Contracts“
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The current political situation (1)
 Return of the Institutional
Revolucionary Party (PRI) into
power:
 The PRI won the 2012-elections with
its presidential candidate Enrique
Peña Nieto who came into office in
December 2012
 The new government renewed its
traditional relations with the
corporative trade unions (above all
CTM, FSTSE, CROC)
 and consolidated its influence and
control on the labor movement: see
the recapture of the teacher union
SNTE .
March
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The current political situation (2)
 Adoption of a Labor Legislation Reform in December 2012:
 Flexibilization of some norms regarding individual rights and
working conditions
 no revision of the registration procedures for trade unions
(toma de nota)
 no reform of the labor jurisdiction
 no enhancing of transparency and democracy obligations for
trade unions
 no regulation to prevent „Protection Contracts"
March
2011 2013
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– AG– Mexico
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