They foresee complicated salary negotiations

Note published in Reforma, Negocios [Business] Section by Verónica Gascón.
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Note published in El Norte, Negocios [Business] Section by Verónica Gascón.
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Note published in Mural, Negocios [Business] Section by Verónica Gascón.
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The increase to the minimum wage will raise the amounts in collective bargaining agreements, according to specialists.

Héctor de la Cruz, a lawyer at the De la Vega & Martínez Rojas Firm, explained that all premiums, benefits, bonuses and incentives that are calculated based on minimum wages in collective bargaining agreements will increase.

“It is possible that this also raise the amounts in collective bargaining agreement negotiations, as some unions could demand increases that are equal to or higher than the increase being granted on the minimum wage”, explained De la Cruz.

He recalled that in Matamoros, Tamaulipas, maquila industry workers requested an increase at the same level as the minimum wage that was granted at the border area.

The National Commission on Minimum Wages decided to increase the minimum wage by 15 percent for 2021.

This increase is comprised of 6 percent directly to the salary, plus 10.46 pesos as Independent Recovery Amount. With this, the minimum wage will increase from 123.22 to 141.70 pesos per day.

In this regard, Germán de la Garza, leading partner in labor services at Deloitte-Mowat, stated separately that negotiations of collective bargaining agreements conducted by unions use the minimum wage as a reference.

Now that the minimum wage has increased, he stated, it will probably be used as a reference for contract negotiations, probably not the 15 percent increase, but the 6 percent increase that was granted, which goes directly to the salary

“For a company, in the current situation in which economy of the Country finds itself, it is frankly a high percentage for the review of salaries”, he said.

The increase to the minimum wage places pressure on salary negotiations because companies are trying to revise down or not give increases to their employees, he added.