Note: In August 1992, the union and the company reached an agreement, in talks joined by the Mexican Department of Labor and Social Welfare (STPS), to sign a new collective agreement and proceed to the re-engagement of workers under the terms of the new contract. In 1993 a different union sought title to the collective bargaining agreement at Volkswagen on the grounds that a majority of workers supported it as the workers’ representative. This claim was found by the CAB not to conform to legal requirement for union registration. The case was closed on that basis.98
Anahuac Foundry and Plating, Inc. and Radical
The company sought a ruling from the CAB through a collective conflict of an economic nature proceeding to terminate the individual contracts of union members. The company also sought termination of the collective employment relationship with the union on the grounds of failure to meet the costs of production. The company argued that it could not meet the cost of operations at its steel foundry.
However, the union had earlier declared and undertaken a strike, in which before the same CAB the union and the company reached an agreement for voluntary termination of individual and collective contracts with appropriate severance pay. The company thereupon dropped its case under the collective conflict of an economic nature provisions of the FLL, and the CAB closed the case.
Balanced Seeds of Mexico, Inc. (Local CAB of
The company invoked the special proceedings provisions in Articles 892–899 of the FLL for collective suspension of the employment relationship in the wake of an explosion that destroyed the plant and equipment for seed production. The company sought permission for a 2-year suspension of the employment relationship. The CAB approved the suspension under provisions that some workers would return to work during the suspension and others would receive appropriate severance pay, in view of the fact that automation in the new plant would require fewer workers.
Industrialized Concrete, Inc. (Local CAB of
The company brought an action of collective conflict of an economic nature for temporary inability to meet costs. The company claimed lack of financial resources to operate the plant and impossibility of obtaining resources. Through CAB conciliation the parties agreed to terminate employment relations and close the plant with payment of 3 months’ salary plus seniority pay and pro rata vacation and holiday pay.
The company’s lack of cash led to non-compliance with the agreement, leading the workers to obtain a lien on the assets. At the time of the Secretariat’s review, assets were being auctioned to satisfy the workers’ claims under the agreement with the defunct firm.