Juan Loredo from the Bufete Legal Laboral law firm talks about how to create virtuous employer-employee circles that boost the competitiveness of Mexico and the rest of Latin America.
Mexico’s business environment is undergoing a radical shift as a result of recent plans and reforms introduced to increase the country’s per capita productivity, investment, trade and income. Within the context of this nationwide strategy, enterprises of all sizes are striving to modernize their relationships with their employees and bring their mentality into line with rules and regulations more conducive to competitiveness. “There are many aspects to be considered when attempting to implement a legal vehicle that both reduces conflicts to a minimum and guarantees a substantial improvement in the efficiency of a company’s processes, but Legal Laboral believes the main obstacle is that law firms are still viewed as problem-solvers, when in fact they have the potential to act as allies that contribute to the success of a business”, says Juan Loredo.
According to Legal Laboral, the employer-employee relationship should be modern, transpaent and based on guidelines that en- courage mutual respect to ensure everyone in the organization is working in the interests of the common good. Put another way, instead of ruling the workplace with an iron fist, the best way to improve productivity is to inculcate a sense of personal commitment and responsibility among employees.
Legal Laboral helps its clients improve the profitability of their businesses by advising them on Mexican and international labor laws and related compliance issues.
This approach can be attributed to a new found appreciation of the interdependence of every member of the value chain and an understanding of how bonds fostered via practical rules that are in synch with labor and social security norms are essential to the sustainable growth of an organization.
“Believe it or not, any company can easily implement such a system and save itself the trouble of costly labor suits. And in the event conflicts do arise, it is important to seek out feasible solutions that allow both parties to continue working together so productivity isn’t affected”, says Loredo. In this respect, Legal Laboral’s innovative legal strategies not only guarantee the sat- isfactory resolution of labor disputes, but have a positive impact on productivity. In the case of new enterprises, Legal Laboral recommends a series of preventive measures that minimize legal risks on the one hand and promote efficiency and profitability on the other. As for organizations that are already up and running, the firm analyzes and restructures processes that aren’t contributing to the company’s vision, thereby creating virtuous circles that foster a culture of compliance and respect for legality in every sense of the word.
WORKING RELATIONSHIPS IN LATAM
“In a broader context, Mexico has gradually modernized its legal framework governing employer-employee relationships and this has made it more attractive than other Latin American nations in terms of attracting productive investment, because it offers greater legal certainty and a level of competitiveness hard to find elsewhere in the region”, says Juan Loredo.
Mexico is a member of the International Labor Organization and has ratified no less than 78 labor agreements —more than many other member countries and many of which are of mandatory compliance.
According to Legal Laboral, despite the social similarities between Latin American nations, analyzing their labor laws is a complex undertak- ing because they have very different political regimes. Generally speaking, though, government intervention tends to predominate in certain productive areas to a greater or lesser extent and their justice systems don’t always deliver.
In terms of labor law, Legal Laboral envisages a future with serious challenges, but also one with valuable opportunities for Mexico, due to its strategic geographical location, which attracts investment in logistics, the manufacturing sector and industry clusters, and its skilled workers, who are more the rule than the exception to it. Legal Laboral believes a decent job should be at once one of the foundations and aspirations of every country. It is precisely by creating virtuous circles and success groups that Legal Laboral aims to help bring about these conditions.
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Revista Negocios, Pro México Julio-Agosto 2017