Last Thursday October 13, 2016, the Mexican Senate approved the draft decree amending articles 107 and 123 of the Mexican Constitution, related to labor justice.

The points to be highlighted are:

1. The Federal Labor Board will be replaced by a Labor Tribunal from the Federal Judicial Power. Local labor justice will be conducted by local tribunals in each federal entity.

2. An autonomous and decentralized Federal Entity will be created with the following authority:

(a) Conciliate in Federal labor matters. As for the local sphere, local entities will be in charge of such authority.

(b) Registration of all the Collective Bargaining Agreements.

(c) Registration of unions, as well as each and every administrative processes related therein.

3. In connection with strike summons, where the subject matter of such is the execution of a collective bargaining agreement, the Union shall evidence that has the approval of the employees working at the workplace.

4. Secret and direct ballot for Union Representative´s election is introduced; as well as for deciding the Union´s determinations.

This draft decree meets with the International Labor Organization´s ("ILO") recommendations, which has been adopted in order to strengthen the employee´s right of accessing into a judicial system for dispute resolutions.

In accordance with the legislative procedure, the draft decree will be sent to the House of Representatives for its discussion and if validated, for its approval; which shall be passed or rejected by the President of Mexico. In the event of being passed, the Federal Labor Law shall be amended in order to reflect from a labor and employment justice standpoint these changes.

Basham Ring and Correa, S.C. labor and employment practice will be glad to discuss any of the above related matter.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.