A robust investment opportunity, Latin America presents a unique set of challenges which blend many of the characteristics of Asia, Europe, and Africa.
First, the region provides a diverse set of countries with varying levels of stability and maturity from an economic and government perspective. Second, with some exceptions, the general legal frameworks impacting labor and employment practices are much more progressive, more comparable to Europe than the United States. And third, the area has a significant potential for investment from multinational corporations.
Within Latin America, two countries tend to stand out as locations where many multinational corporations operate: Mexico and Brazil. Both countries offer robust customer and employee markets and have fairly stable government and legal structures. Similarly, both countries have very employee and union-friendly employment law frameworks which can make operating in the areas challenging.
Other countries in the region, like Argentina, Chile, Uruguay and smaller countries within Central America have varying levels of multinational corporations participating. Like in Mexico and Brazil, unions in the area can be powerful and HR and Labor Relations executives working in these areas need to understand the applicable labor relations frameworks.
Latin America is an important region for HR Policy Members and the Association’s HR Policy Global Package regularly tracks important HR and Labor updates in the region with the goal of helping our members stay on top of the developing HR challenges in Latin America.