Independent Union Expands Power in Mexican Border Cities Ahead of Last Stage of Labor Reform

After gaining the representation of collective bargaining agreements in Panasonic and Tridonex in Tamaulipas, SNITIS—an independent Mexican union founded by labor lawyer and Congresswoman Susana Prieto Terrazas—is filing another case under the USMCA on behalf of workers at BBB Industries in the border city of Reynosa and is reportedly planning to file at least five more complaints. Meanwhile, the staged implementation of Conciliation Centers and Labor Courts will be finalized in two months in eleven states with the highest concentrations of manufacturing workers and highest rate of labor disputes.

SNITIS continues its success in the northern border region after finalizing a contract with Panasonic containing a 9.5% salary increase and winning the dispute with a traditional union at Tridonex. In contrast to the long-existing relationship established by the two facilities, SNITIS began accepting requests from workers at companies to which they previously had no exposure, such as BBB Industries. Employers operating in Mexico, especially those in the northern border region, should be aware of the trend and keep a comprehensive record of the voting process for future inspections.

Significantly, the last 11 states must complete their implementation of the Conciliation and Labor Registry Center and Labor Court by October. This could be complicated, as the eleven states have the most intense economic and industrial activities and constitute 60% of the country’s labor disputes. Once established, the organizations verifying union representation will monitor and decide labor disputes under oversight from the Federal Center for Conciliation and Labor Registration (CFCRL).

However, service requests to CFCRL have increased so significantly—including a 61 % increase on registering and legitimizing collective labor agreements—the organization is struggling to complete them. Some companies were asked to rely on public notaries to verify their contracts, where ultimately a thorough inspection was not conducted. Recently, Susan Prieto petitioned the Mexican government to enhance its oversight and ensure proper procedures.