Redefining Labor Policy Through Dialogue: The Role of Business

Mexico's labor landscape is undergoing a transformation driven by institutional reforms and strengthened dialogue between businesses, unions, and the government, explains Lorenzo Roel, President of the Labor Commission, Business Coordinating Council (CCE). While business leaders were initially concerned that reforms could jeopardize worker funds, consensus-building has shaped a collaborative reform process. 

"The business sector was concerned that reforms to institutions would affect workers' money, breaking schemes of the existing tripartite formula," says Roel. However, the process has included organizations such as the Revolutionary Confederation of Workers and Farmers (CROC), the Mexican Association of Insurance Institutions (AMIS), the National Association of Supermarkets and Department Stores (ANTAD), Fuerza y Luz, and the Employers' Confederation of the Mexican Republic (COPARMEX), among other representative actors of the labor ecosystem.

The main axes of the labor agenda for the 2025-2026 period include several proposed reforms to the Federal Labor Law (LFT). These include regulation of work on digital platforms, reduction of the working day, increase of Christmas bonus from 15 to 30 days, clear rules on the minimum wage and its relationship with other income, and modifications to access to seniority premium and severance payments.

The private sector is focusing on promoting reforms that adapt labor conditions without compromising the economic sustainability of companies, says Roel. One of the objectives is to reach the minimum required wage so families can cover their basic needs, as measured by the National Council for the Evaluation of Social Development Policy (CONEVAL). This indicator, initially set by COPARMEX, has been taken up as a goal by President Claudia Sheinbaum.

The General Minimum Wage (SMG) stands at MX$8,480 (US$433) per month, which represents 90.59% of the minimum wage required so families can cover their basic needs, estimated to be MX$9,360 (US$478). In comparison, the minimum wage associated with the Federal Remuneration Law is MX$12,400 (US$634).

Another key point is the reform of the working day. This initiative contemplates progressively reducing the workweek to a total of 40 hours by January 2030. "We will gradually reduce the work week until we reach, no later than January 2030, a total of 40 hours per week. In this way, we will meet a historic demand of the Mexican people," says Marath Bolaños, Minister of Labor and Social Welfare.

Other reforms are expected to impact daily working conditions. Among them is the establishment that the minimum wage cannot be substituted by tips or voluntary bonuses. This bill, approved by the Chamber of Deputies, is being reviewed by Senate committees.

Another reform proposes the grant of five days of paid leave for bereavement in the event of the death of direct family members. This measure, already approved in commissions, is pending a vote in the full Senate. Also under discussion are provisions on transparency and gender salary equity, including protocols to eradicate salary gaps and the obligation for companies with over 100 workers to report remuneration criteria.

Another project under analysis is the reduction of the period of service required to access the seniority bonus, from 12 to seven years. This initiative, presented by Deputy Manuel Baldenebro, is pending in the Labor and Social Welfare Commission.

Finally, an increase in the severance payment for termination of labor relations has been proposed, from 20 to 90 days per year worked. The intention is to adapt the regulatory framework to labor market conditions and to give proportional recognition to years of service.

The creation of a National Commission for Social Dialogue is being discussed, explains Roel. This will be a permanent body linking the business and labor sectors and will accompany the implementation and evaluation of these reforms.

The reconfiguration of the Mexican labor model poses implementation challenges that require effective coordination between sectors. The establishment of consultation mechanisms, such as the Economic and Social Council, aims to institutionalize consensus as the guiding principle of structural reforms.

"This formula can serve us to carry out many adjustments that our ecosystem requires," says Roel, highlighting the willingness of the private sector to actively participate in the transformation of the labor environment under a collaborative approach.