Cesar CantuMexican labor authorities are getting more serious about worksite inspections, particularly those aimed at making sure that no gender discrimination is happening in the workplace.
Mexico’s Labor Ministry recently published a new protocol for gender-focused worksite inspections. The point of this new protocol is to “ensure gender equality in the workplace, as well as to fight discrimination, violence and harassment at work,” according to the ministry.
This won’t change anything about current Mexican labor law. The protocol renews guidelines for labor inspectors, providing stricter and more focused questionnaires for them to apply during their worksite visits, explained Oziel Guerrero, a labor attorney and partner at Mexican law firm Vega, Guerrero & Asociados.
That does not mean that businesses operating in Mexico can rest easy, however. The protocol also requires inspectors to probe and review company documentation to make sure that employers are complying with labor and gender equality laws.
“Inspectors are now instructed to conduct an exhaustive review of the company’s files and practices to assess whether both male and female employees are experiencing gender equality with regards to conditions and benefits in employment,” pointed out labor attorneys María Fernanda Gómez and David Leal in a recently published bulletin. “An innocuous statement from any employee can spark an administrative nightmare for employers that ultimately could end in steep penalties.”
It must be noted that there are two types of inspections: ordinary and extraordinary. Employers will receive a 24-hour notice before an ordinary inspection is executed. Extraordinary inspections come unannounced, however, and they’re usually prompted by workers’ complaints. Employers cannot deny access to labor inspectors.
The new gender-focused queries touch on matters workplace discrimination against women, sexual harassment, unequal pay and proper maternity leave, as well as the treatment of female employees who are either pregnant or lactating.
Spotlight on Latin America and the Caribbean – Nicaragua, Costa Rica and Jamaica are the top countries in the region for closing the gender gap, according to @wef’s Global Gender Gap report. #gendergap23
https://t.co/x6WiEQk0aB pic.twitter.com/MZ87aongsq— World Economic Forum (@wef) June 21, 2023
Mexico has seen mixed results in its fight for gender equality. The country ranked 33rd (out of 146 nations) in the World Economic Forum’s latest Gender Gap Index. When it comes to matters of economic participation and opportunity, however, the country ranked 110th.
About 28% of working women in the country claim to have suffered workplace violence of some sort, according to Mexico’s federal statistics office, known as Inegi. Around 18% say they have been victims of workplace discrimination, 14% say they’ve been the target of sexual harassment, 12% say they have suffered psychological violence and 1.9% physical violence.
Getting serious
Mexico is infamous for the poor enforcement of many of its laws. However, developments over the past five years point to the country growing serious about its own labor regulations.
Alejandro Salafranca, the man in charge of the Labor Ministry’s area for workplace inspections, has made several public statements about putting an end to the “feast of impunity” that was common before his arrival to the ministry.
According to Salafranca, previous inspections were too lax, allowing companies enough time to put their matters in order and avoid sanctions. The new approach aims for faster and sharper probes. Also, the ministry aims to execute 32,000 workplace probes this year.
“The Labor Ministry has grown more serious with its inspections,” commented Oziel Guerrero.”I would say that, yes, businesses should keep an eye out for this new [gender-focused] protocol and for worksite probes in general.”
Much of Mexico’s revamped approach to labor rights comes from its recent reform to labor law, which in turn was pushed –at least in part– by the signing of the United States-Mexico-Canada Agreement (USCAM), an upgraded version of NAFTA.
The USCMA has forced Mexico’s Labor Ministry into over a dozen probes, most of them in the manufacturing sector. One of the most recent, however, was aimed at a call center run by Atento –one of the biggest CX operators in Latin America– over alleged union busting practices. Mexican authorities claim to have found no reason to punish Atento. The US government disagreed, however, calling for a dispute resolution panel; only the second ever to be requested under the USMCA.
Most firms won’t find themselves in the middle of a binational trade dispute. The fact remains, nevertheless: Mexican authorities are getting more serious about labor regulations, gender-focused or otherwise.
“Employers in Mexico should conduct an exhaustive audit of their company files, policies and practices to ensure that they are complying with all laws promoting gender equality,” recommended Gómez and Leal in their bulletin. “The audit should include a review of employment contracts, termination documents, and policies to prevent discrimination and harassment.”
Mexico is going through a resurgence of sorts in exports and foreign investment. The country keeps hitting record numbers for both year after year. The latest wave of nearshoring, plus the signing of the USMCA, is consolidating Mexico further as one of the prime destinations for business operations in the Americas.
Such a reputation comes with increased pressures for alignment with international regulations and compliance. The latest barbs thrown at Mexico through the USMCA show that government authorities are being pulled into a regulatory framework that’s more “regional” than national. Companies operating in the territory will have to fall in line too.
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