“With the labor reform of 2012, together we have increased labor market flexibility, encouraged productivity, and strengthened transparency and trade union democracy. Now we must also modernize labor justice together,” he declared.
• The proposal to undertake a sweeping change of labor justice in our country, contained in the Everyday Justice Reform, is a paradigm shift that will allow us to bring our justice system into line with the times, he said.
It is not only economic growth that is driving the evolution of our labor market. These advances are also undoubtedly the result of dialogue and joint efforts between production factors, he said.
• He led the celebration of International Labor Day.
President Enrique Peña Nieto today led the commemoration of International Labor Day, in which he thanked, “Mexico’s workers, because, through their daily efforts and work in small, medium-sized or large companies, they make it possible for our country to achieve higher levels of development, progress and welfare for Mexican families.”
He also thanked, “All the workers in the country, their union organizations and their leaders, with whom the government maintains a frank, open and constructive relationship.”
During the event, held at the official residence of Los Pinos, the President stressed that through the labor reform of 2012, “Together we have increased labor market flexibility, encouraged productivity, and strengthened transparency and trade union democracy.” Now, we must also modernize labor justice together.
He recalled that on April 28, he submitted a package of reform bills in the field of Everyday Justice, including a proposal to make sweeping changes to labor justice in our country.
"This is a paradigm shift that will allow us to bring our justice system into line with the times,” he said. He mentioned some of the major changes included in this bill:
• Labor Justice is to be administered by the Federal Judiciary Branch or the Local Judiciary Branches.
•Conciliation processes must be more agile and effective. To this end, the creation of specialized, impartial Conciliation Centers has been proposed.
• It is proposed that the federal conciliation agency be a decentralized body familiar with the registration of all the collective bargaining agreements and those of trade union organizations.
• Through the respective law, the procedures for the signature, deposit and registration of collective agreements will be reviewed, ensuring full respect for trade union autonomy and the right of association.
President Peña Nieto declared that If this reform is approved, we will achieve the most significant change for the protection and defense of workers' rights since the creation of Article 123 in the 1917 Constitution.”
“In short, we are constructing 21st Century labor justice for our country’s globalized, 21st century economy,” he said.
DIALOGUE AND AGREEMENTS ARE PART OF OUR FUNDAMENTAL INSTITUTIONAL DEVELOPMENT
The president declared that, “Mexico is a democracy where dialogue and agreements are a fundamental part of our institutional development,” exemplified by, “The positive relationship between labor leaders, business representatives and government authorities.”
He noted that, “The tripartite system has been valuable and allowed us to achieve results.” Beyond the formal participation of the three sectors in various Mexican government institutions, workers, employers and authorities are combining efforts to promote national development, he said.
He declared that the results are positive and encouraging and shared some of them:
“Today, more Mexicans have formal employment than three years ago. From December 1, 2012 to March 31, 2016, the number of workers affiliated to the Mexican Social Security Institute grew by 1,850,970 and I'm sure that with the figures for April, we will be breaking records: more than two million jobs created in our country. This is the highest job creation for this period in any federal administration,” he declared.
The president explained that this is not only a consequence of the efforts the government has made to create facilities and advance on the basis of structural changes that will enable Mexico to continue to have greater economic dynamism. “It is the result of the continuous, permanent dialogue between employers and workers in our country,” he explained.
• Consistent with this, the National Institute of Statistics and Geography (INEGI) reported that, “In March, the national unemployment rate stood at 3.7 percent of the Economically Active Population. This unemployment rate is not only lower than that of the previous month, but is the lowest for March in the past eight years.
Equally important is, “The formalization of the labor market. Between November 2012 and March 2016, the Labor Informality Rate fell by 3.2 percentage points, reaching its lowest level in the past decade. This means that there are now more workers in the formal economy, who are now entitled to social security, rather than in the informal sector. We are reversing the growing trend of recent years we had observed as a nation: more workers in the informal sector, without the right to constant, ongoing training, or social security.”
He said that the efforts undertaken by productivity committees at both the national and state levels have managed to increase this fundamental variable of the formalization of employment.
• From December 2012 to December 2015, according to data from INEGI, the Global Index of Labor Productivity of the Economy has experienced growth, albeit modest, of 1.4 percent; it is worth noting that this reverses the decreasing trend of previous years and decades.”
• As for wages, there are also figures indicating improvement. For example, he said, from December 2012 to December 2015, the Average General Minimum Wage accumulated a 5 per cent recovery of purchasing power, and at the end of this year, the minimum wage will have an expected and projected cumulative recovery of at least 6 per cent.” While this appears modest, he continued, “I must say that it is the largest recovery for a similar period in the past 36 years; we had not seen or had had a real recovery in workers’ purchasing power.”
The president confirmed the government’s commitment, through a constant dialogue with workers and employers, “To arrive at the best conditions and, above all, to raise and further recover the purchasing power of workers’ wages. This is the government’s permanent, constant and accredited commitment.”
President Peña Nieto said that, “These indicators of higher employment, formality, productivity and wages and lower unemployment reflect the positive evolution of our economy. They reflect a strong, stable economy, an economy that is growing and is doing so on the basis of the strength of its domestic market.”
He also recalled that on April 29, INEGI presented its GDP estimate for the first quarter of 2016. According to this calculation, with seasonally adjusted figures, the Mexican economy grew 2.9% annually,” he said.
“However, it is not only economic growth that is driving the evolution of our labor market. These developments as also undoubtedly the result of dialogue and joint efforts between production factors, and the best example is that we have spent almost 31 consecutive months without any federal strikes,” he said.
He explained that although our Constitution, “Acknowledges the right to strike, Mexico is the United Nations and ILO (International Labour Organization) country that has recorded the longest period without a federal labor strike. This is the result of this constructive dialogue, this level of understanding and agreement between workers and employers,” he said.
“This labor peace and the achievements we have referred to consolidate our position as a more competitive, formal and productive country,” he said.
THE TRIPARTITE SYSTEM, A DECISIVE FACTOR FOR PEACE WORK: NAVARRETE PRIDA
Alfonso Navarrete Prida, Minister of Labor and Social Welfare, said that during President Enrique Peña Nieto’s administration, the tripartite system has been a decisive factor for labor peace, factor, expressed in almost 31 months without a single federal strike, a continuous drop in labor informality and an increase in productivity, in which Mexico moved up seven slots in the World Economic Forum ratings.
He said that, “There has been so much dialogue that we have spent 31 months without a single strike, not only by the unions and large companies represented here, but by small and very small businesses with eight, 10 or 15 employees, which have not gone on strike for 31 months either.”
He said that, “Today the atmosphere of industrial peace prevailing in the country allows us to confirm that in Mexico there is a great capacity for dialogue between factors of production and that our tripartite system has matured and is ready to encourage conciliation stays to reach arrangements.”
He confirmed that, “Under our tripartite system, Mexico has undergone its three transitions in peace: the demographic transition, which has made us more of an urban than a rural country; the epidemiological transition, which has made us a nation of longer life expectancy, in which our children do not die early, and the democratic transition, which allows us to see power switching as part of our life and social fabric.”
He considered that the tripartite system has been a key mechanism for addressing issues in the best interests of workers and employers, as reflected in the unprecedented agreements that this Federal Government has achieved in order to advance the responsible, gradual recovery of the minimum wage, which has recorded a five percent recovery in real terms in the first three years of this administration. This is its greatest recovery for a similar period in more than four presidential terms.”
Therefore, he said, “Under our tripartite system, we can say that Mexico is alive every day, and enables us to sit here today; face to face and, above all, dialogue for the benefit of Mexico.”
THE TRIPARTITE SYSTEM IS HERE TO STAY: IT HAS GIVEN US SPLENDID RESULTS, LET US KEEP CONTRIBUTING TO THAT: CARLOS ACEVES DEL OLMO
Citing the good results of the work undertaken in INFONAVIT, IMSS, INFONACOT and Consar. Secretary General of Confederation of Mexico’s Workers (CTM) Carlos Aceves del Olmo said that the tripartite system is here to stay; we must not turn away from it because it has yielded splendid results.
The CTM leader said that in labor issues, both government, businesses and unions are involved in various issues, which has led to many months of labor peace in the country.
“That’s the result of this great alliance: capital, labor and government arbitration; the facilities for us to get on, the compliance of social agencies that serve workers and the dialogue that exists permanently, but also to express workers’ point of view,” he said.
Aceves del Olmo welcomed the fact that Structural Reforms are a historic pact that has already begun to yield results and move under its own steam. “It's a good thing it is like this; we see the struggle we engage in every day to bring order to public education, and all the media touched by these reforms.”
CONCILIATION, THE TRIPARTITE PRINCIPLE THAT BRINGS TOGETHER WORKERS, COMPANIES AND GOVERNMENT IN SOCIAL DIALOGUE FOR NEGOTIATION, FORGING AGREEMENTS AND THE COUNTRY’S DEVELOPMENT: JUAN PABLO CASTAÑÓN
Juan Pablo Castañón Castañón, President of the Business Coordinating Council hailed the fact that, “We have reached another Labor Day in a context of stability and understanding between production factors, under signs that have left a positive mark on labor relations in Mexico in recent decades:
Conciliation, the tripartite principle that brings together workers, companies and government in the social dialogue for negotiation, forging agreements and the country’s development.”
EOn behalf of the business sector, he thanked the men and women whose talent and daily effort, he said, “Are the driving force and the most important asset of the country’s companies and public and social institutions.”
He also thanked the labor leaders and the Minister of Labor, “Because they are always engaged in tripartite dialogue, positive construction and the search for solutions that overcome differences.”
He declared that much remains to be done to achieve a more efficient, expeditious, modern justice system in keeping with the times, under the principles of legality, impartiality, transparency, efficiency and legal certainty for the benefit of all Mexicans.
“This modernization is essential to strengthening and boosting the country’s economic and social development. We will do so, as we have done with all these challenges, according to the same tripartite scheme of social dialogue and forging agreements, and seeking the inclusion of the proposals and concerns of all parties,” he explained.