Risk factors identified from the company-union relationship: Evidence from the Mexican Stock Exchange

Abstract

Purpose: To analyze the risk factors in the relationship between unions and companies listed in the Mexican Stock Exchange Price and Quotations Index. 

Methodology: The study employed a qualitative, cross-sectional, descriptive approach, utilizing content analysis techniques. Information contained in the Annual Reports of 20 companies listed in the Mexican Price and Quotation was examined.

Results: Industrial sector companies have a higher number of unionized workers. However, some companies in the identified sectors do not report the percentage of workers who belong a union. Among the risk factors reported regarding the company-union relationship, strikes and legislative changes stand out. 

Implications: The companies under study have implemented risk management programs that not only help them identify risks in their relationships with unions but also document them in their annual reports, setting an example for other organizations to follow. Such practices both mitigate undesirable events and create opportunities for growth. Our results contribute to the knowledge of Enterprise Risk Management (ERM), including its phases, definitions, and a comprehensive inventory of risks associated with company-union relationships. This knowledge serves as a catalyst for the adoption of ERM practices across the Latin American region.

Originality: This study highlights risk identification as a tool for crucial decision-making regarding company/Union relationship. The study is the one the first addressing risks by ERM between company and unions.