The U.S. government periodically conducts evaluations of Mexican labor reform.

Mexico approved a labor reform on May 1, 2019. After years of debate, the new law seeks to strengthen workers’ rights.

Evaluations of Mexican labor reform

In the United States, the USMCA Interagency Monitoring and Enforcement Committee (CIL) continuously collects and evaluates information on Mexico‘s labor reform. 

Pursuant to the USMCA Implementation Act, the ILC submits detailed semi-annual reports to the U.S. Congress on this issue. 

In addition, the statute created Mexico’s Independent Labor Expert Board, which also gathers information and provides the U.S. Congress with an independent review of Mexico’s progress on its labor reform. 

In addition, Section 2(d) of the Presidential Memorandum “U.S. Trade Policy First” directs USTR to conduct public consultations to gather information on the operation of the USMCA. 

U.S. Trade Representative (USTR) nominee Jamieson Greer said last week that if his nomination is confirmed, he will review all of this information to assess Mexico’s work to comply with its labor obligations under the USMCA.

Labor Reform

Mexico approved a labor reform on May 1, 2019. After years of debate, the new law seeks to strengthen workers’ rights. First, it guarantees secret ballots in union elections. In addition, it allows free union membership and creates an independent tribunal to resolve labor disputes. It also establishes Labor Registry and Conciliation Centers. These bodies help mediate conflicts and register collective bargaining agreements.

On the other hand, the reform will become fully effective in May 2023. In the meantime, Annex 23-A of the USMCA obliges Mexico to comply with new rules. These include eliminating forced labor, protecting freedom of association and prohibiting employer interference. Finally, it requires guaranteeing free elections and fair courts.

Each party to the USMCA commits to establish in its labor legislation the recognition of and respect for the fundamental rights of workers, as stipulated by the International Labor Organization (ILO). In addition, all parties have an obligation to ensure compliance with these rights.

Fundamental rights include:

• Freedom of association and the effective right to collective bargaining.
• Elimination of all forms of forced and compulsory labor.
• Eradication of child labor.
• Elimination of discrimination in respect of employment and occupation.