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Mexican Lawmakers Approve Overhaul of Labor Law
Keywords:
Tags: Current Focus, Mexico,
Chnages to Mexico's labor laws passed in Congress and to be signed by president Calderon include companies having to pay only one year of back wages to laidoff workers for lawsuits on unfair dismissals. The law also formalized part-time work and temproary training contracts. The effort is likely to foster greater formalization of the workforce and push fewer workers into the underground economy. About 29% of Mexican workers are in the underground economy, where worker protections and legal benefits are lacking. Also made part of the law an yearly audit of union finances and election by secret ballot for unions. Mexico's large public sectors form a core base for support of the newly elected PRI government.
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The Mexican economy is expected to see a GDP decline of nearly 7% in 2009. With the serious downturn in the auto industry and in other industries, serious problems with monopolistic firms and high prices in the telecom sector, underinvestment in the oil sector, and the impact of the war on drug cartels, one expert says its surprising that Calderon is still fighting all these battles.
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Mexico's Felipe Calderon looks back at his policies and what they achieved for Mexico in a meeting with WSJ Editors in Sept. 2012. He describes the problems he faced and why he pursued an aggressive fight against drug gangs- the need to establish a rule for law state in the country. The achievements he cites- 113,000 engineers graduating each year in Mexico. The growth of jobs and the diminishing need for Mexicans to cross the border into the U.S. as the economy improved in Mexico during his 6 years in office.
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