Catherwood LibraryILR School

Mexico President-elect Andrés Manuel Luís Obrador has proposed legislation to improve collective bargaining rules, partly to shift power from labor leaders to union workers, and partly to comply with the new trade agreement with the U.S., which had been negotiated this summer with an eye towards exerting more control over wages in Mexico. Currently, “protection agreements” may occur where deals are struck between labor leaders and management without worker consent. An estimated nine out of 10 agreements have been struck without worker consent or even knowledge. The new legislation would require the votes of at least 30% of union workers before a new contract is signed. Protection agreements currently in place would be given an expiration date unless workers vote to extend them. The president-elect had campaigned with promises to improve worker wages and end “boss rule” in unions. Average wages in Mexico were almost 50% lower than in the next poorest OECD country, Hungary; the national minimum wage is around $1,150 a year.