Unions in Mexico often raise questions among foreign companies, especially those entering the country through nearshoring, manufacturing expansion, or the creation of new industrial operations. When we advise clients on the importance of establishing a union from the beginning, the idea is sometimes met with hesitation.
However, if a company facilitates the arrival of a serious, democratic, and professional union chosen by its workers, this organization can authentically represent employees’ rights while maintaining a respectful and collaborative relationship with the employer. This proactive approach strengthens long-term labor stability and minimizes compliance risks-critical factors for companies operating under Mexico’s evolving labor framework and the USMCA.
For decades, many unions operated under corporatist models with limited internal democracy, often resulting in protection contracts that benefited employers more than workers.
The 2019 Mexican Labor Reform transformed this landscape by introducing:
These reforms aim to ensure authentic collective bargaining and greater transparency-particularly relevant for industries such as manufacturing, automotive, aerospace, logistics, consumer goods, and shared service operations.
As a result, unions have developed training programs to prepare leaders who can foster mature, constructive relationships that benefit both employees and employers. For companies new to Mexico, understanding these obligations is essential to avoid labor disputes and ensure a compliant and ethical work environment.
If a union is to truly support personnel management, companies must not only allow but actively promote open communication between union leadership and workers. Sharing leadership in this way promotes early detection of issues and strengthens trust.
This collaboration is strategic and highly beneficial for companies operating in Mexico-especially those focused on nearshoring or large-scale industrial operations.
Benefits of Building a Strong Union Relationship
At DIMSA, we believe that labor stability relies on a clear structure supported by three independent and reliable sources of information:
1. Supervision
Supervisors and middle managers have the closest contact with workers, yet they often receive only technical training. Additional development in human and social skills enables them to detect and resolve potential issues early.
HR leaders must actively visit the production floor-not rely solely on office work-to understand employee concerns firsthand.
This visibility helps prevent conflicts and promotes a culture of transparency.
3. Union
A genuine union should maintain continuous communication with workers and share information objectively.
When unions, HR, and supervisors collaborate, companies achieve higher employee engagement and long-term workplace harmony.
The three pillars working together create an environment where employees feel heard, respected, and motivated-turning the company into a place of stability and growth for all.
A well-structured, reputable union-supported by clear protocols and consistent communication-is far more beneficial than leaving a vacuum that can attract disruptive or opportunistic leadership.
For companies investing in Mexico through nearshoring, manufacturing expansion, or industrial operations, establishing union relations early is crucial for labor stability, compliance, risk mitigation, and operational efficiency.
I leave you with this reflection:
“You can buy a man’s time, you can buy a man’s physical presence at a given place, you can even buy a measured number of skilled muscular motions per hour. But you cannot buy enthusiasm, you cannot buy initiative, you cannot buy loyalty, you cannot buy the devotion of hearts, minds, and souls. You have to earn these things.”
– Clarence Francis, CEO, General Foods Co.
By: Norma Garza, HR Manager
