Brief Description of Employees’ and Employers’ Associations
All employers and employees are mandatorily represented by the respective Union. The Unions that will represent the employer and its employees are linked to the activities performed by the company in each city or state.
Rights and Importance of Trade Unions
Unions can negotiate on behalf of the employers and employees and execute collective bargaining agreements. Collective bargaining agreements are instruments executed between the unions representing employers and employees, or between the employees’ union and a specific employer for purposes of establishing general and normative rules that govern the relationship of a given category of employers and employees. The terms and conditions negotiated by the Unions are mandatory and cover the employers and employees of the category.
An employer may also negotiate directly with the employees´ Union a specific collective bargaining agreement applicable to its employees. There are some matters that can only be implemented by means of a collective bargaining agreement such as an offsetting of working hour’s system and profit/result sharing program.
Employees’ Representation in Management
The members of the employees’ committee have the duty of representing the employees before the Board of Directors. In addition, public entities with more than 200 employees must elect an employees’ representative to occupy a position and represent them on the Board of Directors. Such representative must be elected among the other employees, in an election with the participation of a member of the representative Union.
Other Types of Employee Representative Bodies
Depending on the number of employees and the risk degree of the employer’s facility activity, the employer must have an Internal Commission for Accident Avoidance (“CIPA”), composed of employee and employer representatives. Also, depending on the number of employees and the risk degree of the employer’s facility activity, the employer must implement a Specialized Safety Engineering and Occupational Medicine (“SESMT”), which is a team of health and safety professionals hired by the employer.