Labor Reform Challenges in Mexico: CFCRL's Budget Constraints
Alfredo Domínguez Marrufo, the General Director of the Federal Center for Labor Conciliation and Registration (CFCRL), recently addressed the Chamber of Deputies' Labor and Social Security Committee, urging them to enhance funding for the CFCRL in 2026 to overcome current budgetary constraints and improve the agency’s efficiency.
HR Policy Globa’s View: after 6 years labor reform, Mr. Dominguez Marrufo claims that employer interference persists. He pointed out that, although labor complaints have been filed through the USMCA's Rapid Labor Response Mechanism and led to significant costs for employers, the reform is superficial.
Launched in 2022, The Federal Center for Labor Conciliation and Registration (CFCRL) in Mexico is a decentralized public agency that handles labor disputes and registers collective bargaining agreements.
The big picture: The CFCRL's conciliation centers and labor courts are overwhelmed and need urgent reinforcement. Budget cuts threaten to reverse progress in labor reforms, risking the return to old practices.
CFCRL has seen a 31% increase in registered collective bargaining agreements, totaling 9,463 new ones after a four-year union legitimization process.
Despite these gains, traditional employers and unions are adapting superficially, negotiating contracts without worker votes to avoid CFCRL oversight.
Trump’s administration has not slowed down the USMCA RRM complaints. The Office of the United States Trade Representative just submitted the 2nd case within one month.
What’s next: Domínguez Marrufo urges the Chamber of Deputies to enhance funding for the CFCRL in 2026 to overcome budgetary constraints and improve labor monitoring.
The CFCRL's operations may face delays and personnel shortages, exacerbated by funding issues in Mexico City's courts, jeopardizing the anticipated gains from the reform.
Experts express concern that without addressing the budget cuts, the Federal Center's effectiveness may be compromised, impacting labor justice.
Wenchao Dong
Senior Director and Leader, HR Policy Global, HR Policy Association
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