Salary Increase Resulting from Collective Contract Legitimization

Following the conclusion of the collective contract legitimization process on May 1, 2023, an analysis conducted by the National Minimum Wage Commission (CONASAMI) on the “Effect of contract legitimization within the framework of Labor Reform” reveals that companies that successfully legitimized their collective contracts through labor unions experience a higher average salary ranging from 8.6% to
10% compared to companies where such a process did not take place.

The analysis results show that workers involved in legitimized contracts obtained a positive effect by being covered by a contract that has been legitimized through the voting of the workers themselves, reflecting their will and the need to be considered in this process.

It is worth mentioning that the base information for the analysis was provided by the Federal Center for Labor Conciliation and Registration, where approximately 14,546 documents containing information about workers entitled to vote for the legitimization of collective contracts were analyzed, with a cutoff date of April 4, 2023.

An important observation within CONASAMI analysis is that, between April 2019 and January 2023, the average salary of workers who legitimized their contract increased by 10.8%, while those who did not legitimize experienced an increase of 13.2%. The majority of workers who legitimized their contract are found in the manufacturing and extractive industries, which have a unionization rate of 16%.

These results highlight the importance and effects derived from the legitimization of contracts in the labor field, as well as on workers’ salaries. Labor Reform and the Ministry of Labor and Social Welfare have promoted and encouraged this process, leading to a significant increase in workers’ income, as well as their benefits and working conditions, which are continuously sought to be improved.

If you require assistance regarding salary increases, modifications, and updates resulting from the aforementioned collective contract legitimization, the labor area of Vega, Guerrero, and Associates is at your service.

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