Economic uncertainty is leading to an increase in technical stoppages in formal companies as well as an increase in calls to strike due to union demands, warned Oscar de la Vega, a labor lawyer.
In his opinion, the tightening of work conditions and the increase to the cost of labor could lead to an increase in informality and the loss of formal employment.
“In face of the current uncertainty, mainly in sectors that export heavily to the United States, particularly in the automotive and auto parts industry … even in regard to the production of cement and aluminum, these sectors were significantly affected by the executive orders issued by (President) Donald Trump, and an arbitrary tariff was imposed.
“Companies in Mexico are seeing the need to reduce their workforce”, De la Vega noted.
He added that companies have conducted technical stoppages, in which the worker receives a subsidy, which can be 50 percent of their salary.
“We are seeing a significant number of companies that do not want to lay off their workers because there is uncertainty about when they will need them again”, he said.
He explained that people are not working, but the employment relationship is maintained while they see what will happen in the coming months.
“Companies have to review salaries with the unions every year, and every two years there are comprehensive reviews that include salaries and benefits. What we are seeing is that negotiation or budget margins are very narrow and, therefore, reviews will be complicated. In some cases the result of the review could be zero increase”, he said.
On the other hand, the expert pointed out that, as a result of this climate of uncertainty, it is very likely that there will be more calls to strike and strikes, as unions will seek salary increases, better benefits and better working conditions through this action.
