On April 28, 2016, President Enrique Peña sent a bill to the Senate to substantially amend the Constitution on Labor Justice.
The bill proposed eliminating the Conciliation and Arbitration Labor Boards, which have been the agencies in charge of Labor Justice, and their replacement by Labor Courts belonging to either the Federal or Local Judicial Branch.
This initiative was discussed and approved by both the Senate and the Chamber of Representatives and was sent to the Local Congresses for their approval. Last February 3rd, the proposed constitutional reform was approved by 17 Local Congresses. We are only waiting for the President to publish the corresponding Decree in the Official Gazette.
As a result of this Constitutional Reform, Labor Justice will be administered by Labor Courts belonging to the Federal or Local Judicial Branch, which will give them more independence in relation to the Executive Branch.
It is also relevant that with the constitutional reform a decentralized organism is created, independent of the Federal Administration and similar bodies in the States, which will be in charge of substantiating a mandatory pre-trial instance for the parties, aiming to speed up labor proceedings so that long, expensive processes will be avoided.
A Federal, Public and Decentralized Organism will be in charge of registration of unions and collective bargaining agreements (CBAs).
This Constitutional Reform will come into effect within one year following its publication in the Official Gazette.
Given that the Constitutional Reform necessarily involves adjustments to the Regulatory Law, especially on procedural labor matters, it is very feasible that a Procedural Labor Code to rule the administration of labor justice will be discussed and enacted, which, according to the Ministry of Labor, is already being developed.