Mexican Congress Passes Pro-Business Labor Legislation

STAFF REPORT

Mexico’s lower house of Congress has passed legislation that makes it easier for businesses to hire workers and participate in the country’s economic growth. Lawmakers passed the bill Friday amid noisy debate over the consequences of such legislation.

Labor unions and leftist parties opposed the bill, saying they fear that such a law would give birth to ‘hire and fire’ culture in the corporate sector.

The existing labor law in Mexico is four-decades-old and was often accused of being favorable to labor unions. Supporters of the legislation say it will help Mexico create thousands of new jobs and breathe new life into the economy by injecting flexibility into the labor market.

If enforced successfully, President Calderón said, the labor laws could add 400,000 jobs per year.

Hourly wages, a three-month probationary period for new recruits and outsourcing regulation all fall under the reform. According to AFP, the legislation was toned down to remove articles that would have imposed audits on union finances as well as direct and secret votes for union leaders.

The leftist parties in Congress argued that the reform would lead to lower wages and ultimately undermine job security.

The bill will now go to the Senate, which will have 30 days to put it to a vote, says Latin American Herald Tribune. The paper sees no roadblock for the bill in the Senate because the final bill has the support of the country’s two biggest parties in both the upper and lower houses of Congress.