USMCA Labor Complaints, Outsourcing: The Week in Talent

The Mexican labor market began to show signs of recovery with unemployment figures close to 4.1 percent, the lowest since the pandemic began in March 2020, and 93 percent of the jobs lost being recovered.

That being said, Mexico’s labor practices continue to be reviewed by its USMCA partners after two labor complaints alleged that the country failed to meet its labor commitments. Mexico’s Ministry of Labor followed up on the labor complaints while the US Chamber of Commerce reiterates its concerns.

As for the outsourcing reform, while 9,000 have started to register as specialized services companies, only 7 percent of companies have gotten the Ministry of Labor’s approval.

In the international news, the International Labor Organization (ILO) Convention 190 regarding violence and harassment entered into force.

Paperwork in order? This is the week in Talent!

Mexican Labor Market Shows Signs of Recovery

Mexico had an unemployment rate of 4.1 percent during May 2021, its lowest since March 2020 when it was 3.3 percent. The secondary and services sectors registered an increase in employment, while jobs in primary activities decreased. According to INEGI, 96 percent of the jobs lost due to the pandemic were recovered.

Ministry of Labor's Next Steps on GM, Tridonex Labor Complaints

In May, the US Trade Representative (USTR) introduced the first ever labor complaint under the USMCA against a union of GM workers in Silao, Guanajuato. Earlier that month, US unions had also urged USTR to use the Rapid Response Mechanism against Tridonex, an auto parts facility in Matamoros, Tamaulipas. This week, Mexico’s Ministry of Labor announced a follow-up on both matters.

US Chamber of Commerce Express Concerns Over USMCA Labor Standards

The organization reported the lack of final procedural regulations on USMCA's labor chapters the US Trade Representative. It also mentioned that labor complaints made to date were based on scenarios made prior to USMCA enforcement.

Only 7 Percent of Outsourcing Companies Are Complying with The Labor Reform

According to Mexico’s Ministry of Labor only 7 percent of all outsourcing companies have successfully registered as Specialized Services Companies. About 9,000 companies have started the processes but only 3,000 have completed it, out of which only 600 have been approved.

Better Regulation Needed for Online Workers

CEPAL and ILO released a joint report detailing how labor dynamics and employment have changed during the COVID-19 pandemic, with an emphasis on digital platform workers. The pandemic harmed labor markets throughout Latin America, resulting in an economic contraction of 7.1 percent, according to ILO.

G20 Ministers Recommit to a Human-centered Roadmap to Get Out of the Crisis

This declaration was issued at the end of the G20 Labor and Employment Ministerial Meeting in Italy and echoes the ILO Global Call to Action for a Human-centered Recovery, which was adopted by delegates at the June session of the 2021 International Labor Conference. ILO welcomed G20’s recommitment to a coherent and human-centered approach to recovery from the COVID-19 crisis.

Lack of Physical Activity Can Hurt Productivity, Culture

Whether employees are at the office or at home, lack of movement and poor posture can impact a company’s outcome. Read our interview with Betsey Banker, Wellness Manager of Ergotron.

Airbus’s Flying Challenge Promotes Children’s Science Education

Airbus finished the second phase of its ‘Flying Challenge’ project in Mexico, which aims to inspire children through science and aeronautics. Flying Challenge was created to help children worldwide become interested in the aerospace world and in science, technology, engineering and mathematics (STEM).