march 2011 friedrich-ebert-stiftung – ag quiz 1 political context and labor relations in mexico...

March 2011 Friedrich-Ebert-Stiftung – AG QUIZ 1

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

September 2013 Friedrich-Ebert-Stiftung – Mexico


• 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“);

Historical Origins of the Mexican Labor Relations



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

Characteristics of the Mexican Labor Relations (1)



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)




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 agreementsIt 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




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




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

The Mexican Trade Union System (1)



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




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




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




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




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

The Mexican Bargaining Culture (1)



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“

The Mexican Bargaining Culture (2)



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 .

The current political situation (1)



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"

The current political situation (2)


march 2011 friedrich-ebert-stiftung – ag quiz 1 political context and labor relations in mexico...

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