Mexico: labor law reform adds labor market flexibility crystallizes discontent

Union democratization cut from the reform.  There were massive demonstrations in Mexico City and other large cities on Tuesday, October 2, answering the call by the trade unions and student organizations against the labor law reform.  Four days earlier, Friday, September 28, the House of Parliament approved, after a 16-hour session, substantial amendments to the Federal Labor Law.  This reform adds flexibility to labor contracts and recruitment/termination conditions and has been debated for 4 years.  It was adopted right by the yardstick of the ongoing political transition: the bill, introduced by right-wing outgoing President Felipe Calderon, received the support of the center-right Institutional Revolutionary Party (PRI) which won the election on July 1.  But the PRI’s lawmakers added amendments: all parts democratizing unions were removed.  Indeed, the reform aimed at ending the opacity of the key trade unions, historically close to the PRI, like the Confederation of Mexican Workers (CTM), the country’s key union.  The initial reform stated that unions had to hold secret-ballot votes and carry out external audits on their finances.  The PRI, which holds a majority of Parliament seats, simply wrote these points off.
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oved. Indeed, the reform aimed at ending the opacity of the key trade unions, historically close to the PRI, like the Confederation of Mexican Workers (CTM), the country’s key union. The initial reform stated that unions had to hold secret-ballot votes and carry out external audits on their finances. The PRI, which holds a majority of Parliament seats, simply wrote these points off.

Possible block at the Senate. Since the beginning of the week, workers and students have been protesting...

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