More than 70 senior HR and business leaders gathered in Mexico City for a Global Luncheon hosted by the CHRO Association and Fisher Phillips. The event spotlighted Mexico’s rapidly evolving labor landscape—from wage and hour reform to union processes and cross-border compliance under the USMCA.
The future of Mexican labor relations: Mr. Alejandro Salafranca Vázquez opened with a detailed outlook for 2025, noting the government’s determination to make formal employment more attractive through multiple reforms.
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He cautioned employers to anticipate ongoing regulatory adjustments and rising employment costs, emphasizing that proactive adaptation will be key to sustaining competitiveness.
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“Formal employment must not only be mandatory—it must be desirable,” Mr. Vázquez stressed.
Navigating shorter work weeks: The second discussion explored the potential impact of reduced working hours on productivity, cost, and workforce engagement.
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Panelists agreed that 46 hours per week is a realistic benchmark for 2026 budget planning, while encouraging early hiring and talent strategy reviews.
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Despite cost pressures, Mexico remains one of the most attractive markets globally, especially amid U.S.–China geopolitical tensions and near-shoring trends.
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“Labor costs may rise, but so does opportunity,” one panelist noted.
USMCA and union activity under the spotlight: Led by Marco Antonio Medellin Torres from Carrier, the third session offered a high-level overview of the USMCA’s Rapid Response Mechanism and Mexico’s labor reforms.
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Panelists underscored the importance of active, structured engagement with unions and maintaining clear documentation to mitigate compliance risks.
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The session also clarified how Rapid Response cases are triggered and handled, reinforcing the need for employer readiness and strong internal controls.
Final takeaways: The program concluded with shared optimism and tangible next steps for HR leaders operating in Mexico. The consensus: 2025 will demand vigilance and agility as employers navigate reform-driven changes—while seizing the opportunities that make Mexico a growth hub in the region.
