What requirements and formalities must my employees meet to go on a strike?

CAN I ASK MY EMPLOYEE TO WAIVE EMPLOYEE'S LABOR RIGHTS?

It is a principle that labor rights, as provided by the law, cannot be waived. If I grant my employees additional labor rights other than those provided? Are these rights also not subject to be waived?

Even if the Labor Code states that the rights specifically provided for in said Code cannot be waived, the Minimum Guarantees Principle and Case Law have come together to establishing that patrimonial rights that employees have contractually obtained are not subject to be waived. Therefore, all labor rights that you have granted your employees, even if those are not provided for in the law, cannot be waived as are not those considered in the Labor Code and other labor regulations.

GENERAL OUTLOOK ON HIRING EMPLOYEES

If I need to hire an individual to perform services for my company, ¿when can I execute a professional services agreement and when can I execute a labor agreement?  

You must know that the fundamental difference between a labor agreement and a professional services agreement is that in the latter the professional individual is independent to perform the work without being subject to constant supervision or directives of the employer. Besides, this professional individual can render the services in a different workplace than that of your company and according with any work schedule thus not being limited by the daily work day. In this case, the employer cannot exercise disciplinary authority other than applying those sanctions previously agreed upon in the agreement for events of non-fulfillment on the part of the professional individual.  

Can I agree with an employee to work for me but subject to a trial period? How long may this trial period last and what are my obligations during this period of time?

You may agree upon a trial period with your employee but only in regards to indefinite-term labor agreements, this trial period cannot exceed a term of thirty days during which either party may terminate the labor relationship with no responsibility. Domestic services labor agreements are the exception wherein the trial period is fifteen days. It is worth mentioning that the trial period term is the same for all labor agreements (except for domestic services), regardless of the complexity of the labor position.

During this trial period your sole obligation is to pay the agreed upon salary.

I have hired a company to perform guard services. Am I liable, labor wise, to the employees of that company I hired?

When you hire a legally incorporated company to purchase a service from it, guard services in this case, you have no labor relationship with the employees that the guard-services company appoints to your company.

You must take into account that you negotiate the terms and conditions and specific characteristics of the services that you require from the guard services company, and even if you are not the employer in such case, the work instructions are issued by you.

Our legislation states that the party that contracts to provide a service to the other party has its own patrimony, said party shall be reputed as the contractor and thus shall bear the obligation toward the hired employee.

Can I make changes to the conditions originally agreed upon with my employees in the event that employees do not agree with such changes?

You cannot introduce unilateral amendments to the labor agreements when such amendments imply the lessening of the work conditions, the salary or any other labor rights

You cannot either lessen the labor agreement conditions by means of a collective bargaining agreement since the provisions of individual labor agreements that are more favorable for the employee will prevail over those conditions contained in a collective bargaining agreement

Only with the consent of the employee can you move employee from one to other physical premises, provisionally or definitively, whereby employee will not be affected in any manner regarding employee´s rights and benefits.

Employee's unilateral transfer is only allowed by labor legislation in emergency situations in order to avoid the stoppage of works or any other consequences as well as to avoid serious economic damages to the employer. This transfer can only last for the time the emergency itself lasts and in no way will such circumstances imply changes in salary or other conditions of the labor relationship.

Unilateral amendments to labor agreements by the employer are allowed when such amendments imply an increase in the labor conditions, position promotions or salary increases that have the employee's backing, either with the explicit or implicit consent of the employee. However, even in such events, the employee may oppose given that, in some occasions, these types of amendments could be used to harm the functioning of labor unions as when, for instance, the employer intentionally appoints employee to a position where employee will hardly be able to perform labor union functions.

I have hired an employee for a limited-time term and this term has come to an end, but I continue needing employee's services, can I extend the term of the original agreement without it turning into an indefinite-term agreement?

You have two ways to continue said labor relationship. By the time the limited-term labor agreement ends, you execute another agreement; this new agreement will continue as a limited-term agreement. You may enter this extension of the original agreement twice and the relationship shall continue to be considered as a limited-term agreement. But, by the time the second extension lapses you continue hiring the employee or employee keeps working for you without the execution of another agreement, then the labor relationship will be construed as an indefinite-term labor agreement for any and all legal effects as of the date the employee started working from day one.

The other possibility is that by the time the original labor agreement is over, employee keeps working for you for an additional thirty-day period without the execution of a new agreement. In such event, the labor relationship will turn into an indefinite-term labor relationship with all implications therein and as of day one.

ABOUT THE DAILY WORK HOURS (WORK DAY)

What are the maximum daily work hours that my employees can work without paying them overtime?

The law allows you to organize the daily work hours of your employees according with the needs of your company. For that purpose there are daily work hours, mixed work hours and night work hours. Each daily work hours has, according with the law, a maximum number of hours that the employee may work, without the requirement from you to pay overtime.

Daily Shift: If the work schedules of employees happen between hour 6:oo and hour 20:oo, the maximum ordinary hours that employees may work during that period is 8 daily hours and 48 weekly hours.

Night Shift: If work schedules of your employees are from hour 20:oo through hour 6:oo of the following day, the maximum ordinary hours that your employees can work is 7 daily hours and 42 weekly hours.

Mixed Shift: If the work schedule of your employees mixes daily shift with night shift, the maximum ordinary hours that your employees can work is seven and a half daily hours and 45 weekly hours. However, if they work more than three and a half hours nightly, that is after hour 20:oo, the day work will convert into night shift.

If your company's employees do not work over the maximum established ordinary hours for each daily work hours, then you do not have to pay them overtime.

Do I have any limitation to ask my employees to work overtime? If they work overtime, how do I have to pay them?

In principle, the Labor Code provides that overtime working is a volunteer behavior on the part of the employee, which translates into the fact that you cannot demand from your employees to do overtime, except in the following events:

To timely prevent and eliminate any catastrophes or accidents that could damage production or services.

Carry out urgent repair works of the machinery, equipment and real estate, when the faulty state thereof endangers the health of the employees or the population;

Carry out urgent works aimed to re-establishing of public services or repair the consequences arising from disasters which affect said services.

Carry out intense seasonal work.

As you can see, the causes that explain the extraordinary compulsory overtime are absolutely temporary and are not dependent on your own will. You cannot nor should convert overtime into a daily practice.

Time worked during overtime and those worked by your employee during day offs are paid with a one hundred percent overcharge upon the relevant ordinary daily work hours. This is to say that, if an employee earns an hourly salary of 100 Córdobas, for each overtime hour employee will earn 200 Córdobas.

Additionally, the law sets a limit to the overtime hours worked by an employee. Said limit cannot exceed a maximum of three hours per day and nine hours per week. Whether it is true that said limit exists in the law, you are required to pay for all overtime hours worked regardless whether they exceed the limits abovementioned since extraordinary events could come forth that would require the presence of the employee in excess of the maximum nine-hour limit stated above.

What should be understood as a confidential employee? What are their daily work hours? Do I have to pay them overtime?

The law provides for two rules to determining whether an employee is considered as a confidential employee or not. The first rule is if they hold or not directing positions within the company. For example: general managers, directors, managers, hold confidential positions. The second rule determines the confidential position upon the nature of the work performed by employees even if these employees do not exercise directing positions. For example, your personal secretary, your driver, etc. who in the course of their work they come to develop a direct and close relationship with you.

Confidential employees are not subject to the work day limitations provided for by the Labor Code; however, they cannot be ordered to stay in their work for over twelve hours per day, and during that period of time they are entitled to a four-hour brake in the manner agreed upon between the parties.

Regarding overtime, it is clearly established that the employer must pay it to those confidential employees that do not hold directing positions, for example, employer's secretary or driver.

Regarding confidential employees that also hold directing positions, unfortunately, neither the law nor the courts that have ruled on these matters, have been consistent. In some cases the employer has been required to pay overtime to these officers and, in some other cases, employers have not been similarly demanded to act in said direction. The matter, ultimately, would have to end up and be analyzed, on a case by case fashion, by the courts.

THE SEVENTH DAY

When am I supposed to allow my employees their weekly rest day? Must those rest days have to necessarily fall upon Sundays?

Article 64 of the Labor Code provides that: "For every six days of continued work or equivalent hours, the employee is entitled to a rest day with the right to salary. The weekly rest day will be on Sundays save the legal exceptions thereto".

Therefore, you must allow your employees to enjoy and rest the seventh day when employees have worked during six consecutive days or the equivalent weekly hours even if those hours are worked in a period of less than six days. For example, there have been cases where the Labor Ministry has authorized work days beyond the limit of ordinary work days. In these exceptional cases, if the authorized work days would be twelve daily hours, the weekly work schedule or work days would be from Monday through Thursday.

The rest day, compulsorily, must be on Sundays, save the legal exceptions which are similar to those provided for work during overtime. Such exceptions are:

When the work cannot be interrupted due to its nature and to the needs it satisfies; those works that require based on their technical nature; drugstores that work extraordinary time and recreational concerns, and those that, if interrupted, could cause serious harm to public services and to the industrial and commercial sectors.

When repair works caused by Force Majeure or Acts of God cannot be delayed

When the works, given their nature, can only be performed upon certain conditions which depend on the irregular occurrences of natural phenomena.

When works at the industrial and business sectors meet the indispensable daily food needs of the population.

VACATIONS, THEIR TERM AND WHEN ARE THEY TAKEN BY EMPLOYEES

How often do I have to grant vacation time to my employees? How do I figure out the remuneration to which employees are entitled during said period of time?

Your employees are entitled to vacation time at the end of every six month-period of uninterrupted work. Vacation time lasts fifteen ordinary days, that fifteen continuous days including Saturdays and Sundays but not holidays. This implies that if, during the vacation time of your employee a national holiday falls therein, you must add one more day to your employee's vacation time.

You also have to grant vacation time to your employees upon termination of the labor relationship, for whatever reason or cause, before employees have taken the vacation time. This is known as proportional vacation time.

During vacation time the employee earns ordinary salary in a way that you will have to pay what ordinarily is earned by the employee, as if employee were performing work. If the salary is for a time unit (commonly known as fixed salary), employer shall pay based on the most recent salary and if salary is variable, employer will pay it as an average of the last six months.

Can I grant my employees their vacation time in a fractional manner?

The position developed in the Labor Code, given the resting nature of vacations, is that they should be taken in a continuous fashion. You must plan ahead vacation time for all personnel and make that planning known to your employees.

However, if your interests and those of your employee concur in that it is more convenient to grant vacation time in a fractioned manner, then it may be established accordingly, as long as there is mutual consent between both parties.

If the labor agreement terminates and my employee has not enjoyed vacation time, do I have to pay employee therewith? How should I figure it out?

Your employee is entitled to fifteen days vacation time at the end of every six-month period of continuous work or to the proportional time according with the time worked, regardless if the agreement is for a fixed term or if it is for an indefinite term and regardless also of the causes for which the labor relationship ended. This means that it is unsubstantial whether your employee resigned or was dismissed by you, in either case the employee will be entitled to compensation for vacation time in cash money.

ABOUT THE SALARY AND OTHER PAYMENTS TO THE EMPLOYEE

Can I freely agree with my employees the amount of the salary and the payment cycle?

You may freely negotiate the amount of salary with your employees; the only limit is that you must abide by the minimum salaries dictated by the Minimum Salary National Commission.

The payment cycle to your employees depends on the work performed:

• On a weekly basis if your employees are manual workers (agricultural workers, construction workers, textiles workers, etc.)
  
• On a fifteen-day basis if your employees are intellectual workers
  
• On a thirty-day basis if your employees perform their duties as domestic workers.

Given the complexity in processing the payroll as well as applicable custom and practice, government employees are paid their salaries on a monthly basis.

When manual workers and intellectual workers perform services for the same employer, the payment cycle can be on a fifteen-day basis for all employees.

What deductions can I apply to my employees' salaries?

You can deduct the following:

• The contribution to the Social Security System
  
• Income tax
  
• The affiliation fee to the labor union
  
• Whatever has been ordered by a judge as alimony for the employee's children

The installment owed you in case you granted a loan to the employee, or if you have advanced employee's salary; in neither case can you charge interests therein.

Our labor legislation does not expressly forbid that you apply other deductions, duly authorized by the employee, to pay third parties.

Commissions and travel expenses I pay to my employees must be construed as part of the salary?

The amounts you pay your employees as benefits and commissions during the ordinary work day are construed as part of the ordinary salary and as such, said additional amounts are subject to legal deductions, such as Social Security and income tax. Likewise, they are considered for payment of labor legal benefits.

Overtime is part of the salary but not of the ordinary salary precisely because overtime is earned during extraordinary work days. Travel expenses, and the like, are not considered part of the salary, except if you pay a fixed and permanent amount not subject to be accounted for. In other words, if you pay a monthly fixed amount without the requirement of submitting account statements, even if it is called travel expenses, those amounts will be considered as ordinary salary.

I am interested in paying employees' salaries by means of bank deposits, Am I authorized to implement that form of payment?

According with the provisions contained in the Nicaraguan Political Constitution thereof, you must pay the salary to your employees in legal currency and at the workplace. Any other payment vehicle would constitute a transgression of the legal provisions regarding this subject matter, even if in daily practice other payment means are becoming customary.

When you pay through a debit card or in any other manner used by financial entities, then you would not be paying at the workplace and this would require the employee to be subject to regulations typical of financial entities in order to collect the salary.

How often are there increases in minimum wages? Am I required to apply said increases to my employees?

Minimum salaries are set by the Minimum Salary National Commission. The minimum salary must be established at least every six months by said Commission, which is comprised of three different instances: government representatives, employers' representatives and employees' representatives.

Paying minimum salaries is compulsory to both, employers and employees. If you transgress the mandates from the Minimum Salary National Commission you will be penalized with a fine equivalent to twenty five percent of the total payroll. Minimum salaries are in full force and effect in accordance with mandates from the Minimum Salaries National Commission and advertised by the Labor Ministry. Supervision over compliance of minimum salary rules is under the Labor Enforcement Corps Inspection.

OCCASIONS WHEREBY A LABOR AGREEMENT IS SUSPENDED

Can I suspend my employees' labor agreements? On what grounds? If I need to suspend labor agreements where should I go to?

According with what is provided for in the Labor Code, suspension of labor agreements are classified in individual and collective suspensions. Collective suspensions always come from you in your capacity as employer. Individual suspensions generally come from the employee, with some exceptions.

Individual reasons to suspending labor agreements are:

• Employee's disability or illness due to an ordinary or professional accident.
  
• Pre and post natal rest of the female employee. 
  
• Detention, arrest or preventive detention of employee. 
  
• Disciplinary measure according with the internal by-laws of the company.
  
• Appointment or election of employees as representatives to state entities, arbitration and conciliation boards, Minimum Salary National Commission or others according with the law
   
• By mutual consent.

As you can tell, the sole suspension cause of labor agreements that depends exclusively on you is the suspension for disciplinary measures, provided it is established in the company's internal by-laws, which had to be previously approved by the Labor Ministry. The internal by-laws must define the reasons why you may sanction your employees demanding from them not to show up at work, with the resulting loss of salaries during those days.

Reasons also exist for collective suspension of labor agreements, that is when a part or the totality of a company's employees are suspended for the following reasons which are not imputable to the employer:

• Lack of raw material
  
• Company's or workplace shut-down ordered by a competent authority (Labor Ministry, Health Ministry, Environment and Natural Resources Ministry) following preventive or corrective reasons of hygiene or security.
  
• Temporary closing-up of the company or workplace for technical reasons (re-modeling of premises, technological changes, etc.), or of an economic nature.
  
• Force Majeure or Acts of God when these circumstances imply the necessary, immediate and direct suspension of work (earthquakes, flood, fire, etc.).

In order to execute the suspension of labor agreements due to a collective suspension cause, you must necessarily request the mediation of the Labor Inspection Department. In those cases dealing with individual suspensions of labor agreements you do not have to go to the Labor Ministry, except in the cases where you have to obtain the Ministry's authorization to enforce the company's internal by-laws.

ABOUT EMPLOYEES' ILLNESS OR MATERNITY DISABILITIES

My employee is sick and has come disabled, what is the maximum disability term?

First of all, the cause of the disability has to be determined and this is the responsibility of the Nicaraguan Social Security Institute. If the cause of the disability is that of a professional risk, the maximum term may be up to one year. In such case, the Nicaraguan Social Security Institute will instruct a procedure to establish a disability pension. If disability is defined as total and permanent, you may terminate the labor relationship with the employee. If, however, the disability is defined as partial, you must re-incorporate employee to employee's position or to a similar position.

If disabilities were the consequence of a common cause, not arising from work, the maximum term is of twenty six weeks. However, given custom and practice, such term extends up to a year, as in the professional risk disabilities.

What are the pre-natal and post-natal leaves I must grant my pregnant employee? During such time, do I have to pay salary to employee?

Pre-natal subsidy lasts four weeks and the post-natal subsidy lasts eight weeks, except if it is a multiple birth (two or more children) in which case the subsidy lasts ten weeks.

The Nicaraguan Social Security Institute assumes 60% of the employee's salary and you must assume the remaining 40%. If employee is not insured, you must assume 100% of the amount of the salary, as a subsidy.

What is the difference between rest days and subsidy days?

According with custom and practice, not by law, the rest period is the rest time prescribed by the medical doctor to employee for a period not exceeding three days. If said rest period is of four or more days, then it is considered a subsidy.

The important issue, however, is that when the Nicaraguan Social Security Institute grants only three rest days, it does not pay anything to employee and thus employee is affected since you are not either required to pay for those days. Only when disability comes from a professional risk, the Nicaraguan Social Security Institute is required to pay from day one.

However, if in your company you have made it a custom to pay employee for those three days, then you must keep paying such, based on the vested rights theory.

ASPECTS REGARDING DISMISSAL OR RESIGNATION OF EMPLOYEES

In the event I decide to dismiss my employee, what should I pay employee?

At any time you decide to dismiss your employee, with or without cause, you must pay employee vacation time and proportional year-end bonus.

If the labor agreement if for an indefinite term and employee did not incur any cause for dismissal, you must pay employee, in addition, an indemnification for the period of employment. If dismissal was for just cause you will not have to pay such indemnification.

If the labor agreement if for a fixed term and you decide to dismiss employee without just cause, in addition to vacation time and proportional year-end bonus, you must pay employee the salaries for the agreement's term still remaining.

To dismiss an employee who has incurred a behavior that implies dismissal, what should I do? What do I have to pay employee?

According with the Labor Code, if your employee has incurred a just cause that implies dismissal, prior to effectively dismiss employee, you must go to the Labor Inspection Department to request an authorization for terminating the labor agreement.

Only when the Labor Ministry has authorized a dismissal you can go ahead and dismiss employee, otherwise you would be facing a lawsuit looking for reimbursement.

Once dismissal in approved, you must pay employee the applicable proportional vacation time and year-end bonus.

In what cases should I pay an indemnification for years of service? How do I calculate that amount?

Indemnification for years of service must be paid when the following two conditions are present:

The labor relationship was agreed upon on the basis of an indefinite term; and

When employee resigns the position with a pre-notice of fifteen days, or if you dismiss employee without the existence of just cause.

Regarding its calculation, for the first three years employee is entitled to a month's ordinary salary for each year or fraction thereof. From year 4 through year 6, employee is entitled to 20 days' salary for each year or a fraction thereof. As of the first day of year 7 seven, employee shall not be accruing indemnification since its maximum is a 5-month salary.

My employee is under an indefinite-term labor agreement; employee has resigned. Do I have to pay employee any labor benefits?

According with the provisions of our law, if your employee, under an indefinite-term labor agreement, resigns, giving you a prior fifteen-day pre-notice for you to find a substitute you must proportional vacation time, year-end bonus and the indemnification for years of service.

If employee resigns without granting you said fifteen-day term, employee will lose the right to the indemnification for years of service. Please be advised that payment of proportional vacation time and year-end bonus are not subject to any condition.

PROFESSIONAL RISK INSURANCE: AN OBLIGATION BY EMPLOYER.

As an employer, am I required to cover all professional risks that occur to my employees?

You must only assume those professional risks of those employees that are not insured with the Nicaraguan Social Security Institute, or else, if you are delayed with your contribution payments to that institution.

Am I required to insure all my employees against professional risks? To what sanctions would I be subject if I do not act accordingly?

From the time employees start their functions you must affiliate employees with the Social Security. In Nicaragua, employer is required to report employee to the Social Security system within the following three days as of the date employee started working, at the latest and deliver the monthly payment of the employee-employer contribution between day 17 and day 25 of the following month.

If you do not insure your employee, besides assuming the costs associated with any professional risks occurred to your employee, you may be subject to a fine from the Nicaraguan Social Security Institute that may be collected through court proceedings.

My employee is not affiliated to the Social Security system and he suffered a labor-related accident. What are my responsibilities thereof?

If your employee is not affiliated to the Social Security system, you must pay for the medical costs, subsidies and indemnifications associated with professional illness, disability or death of employee. That is to say that, if your employee is not affiliated to the Nicaraguan Social Security Institute, all responsibilities for professional risks are yours.

LABOR UNIONS, AN OUTLOOK THAT EVERY EMPLOYER SHOULD BE AWARE OF

In my company a labor union is being organized, can I oppose to that organization? Do employees need to have my authorization thereto? Do they have to give notice to the Labor Ministry?

If your employees are organizing a labor union, employees are not required to give notice either to you or to the Labor Ministry.

The right of employees to seek an organization through labor unions is a Constitutional mandate to both parties within the labor relationship.

The Constitution provides for an unlimited freedom to either organize a labor union or not. According with Treaties 87 and 98 of the OIT (International Labor Organization) you must not in any way intervene in the life of labor unions. The State is also precluded from such intervention. This being the reason why employees do not require your prior authorization or that of the State to be organized as a labor union.

Can members of labor unions meet during work hours?

Labor union activities must not interfere with the normal development of the daily work hours. To carry out general meetings of the union during working hours, the directors of the union must seek an authorization from the employer, unless such authorization had been previously agreed upon through a collective bargaining agreement.

Likewise, the union's board of directors must meet on non-working hours except if they have an authorization to meet during working hours.

ABOUT COLLECTIVE BARGAINING AGREEMENTS

Am I required to hold a collective bargaining agreement at the request of a union?

When the labor union requests from you the negotiation of a collective agreement, you are required to assist to the negotiation process. The union files the request before the Labor Inspection Department which delivers the file to the Office of Collective Agreements and Conciliation of the Labor Ministry and this office will be responsible for giving you notice to appear to the negotiation process. Your labor union will have the same obligation in the event it is you who requests the revision of the collective agreement.

For how long a time is a collective agreement in full force and effect and which are the matters that may be negotiated?

The operation of the collective agreement cannot exceed two years. However, if the term set as the duration of the collective agreement comes due but neither party requests its revision, the term will be automatically extended for an additional term equal to the original one agreed upon and the exact original will prevail. However, it is also possible that the collective agreement is revised before its term comes due in the event that conditions of your company or conditions in the country change which would justify such revision.

Regarding the matters that can be negotiated via a collective bargaining agreement, can be on any situations relative to general work conditions, development of the employees' participation rights in the administration of the company and enhancement and compliance of the reciprocal rights and obligations.

Nevertheless, there is full freedom for the parties to determine the agenda of a collective bargaining agreement limited, however, to the legal impossibility of negotiating conditions that are inferior to those provided by law or that violate vested rights.

MY EMPLOYEES WENT INTO A LABOR STRIKE, WHAT DO I DO NOW?

What requirements and formalities must my employees meet to go on a strike?

To exercise the right to strike the following requirements must be met:

• That the conflict has as its purpose the defense or improvement of the labor conditions of employees or the negotiation or defense of the collective bargaining agreement.
  
• To exhaust conciliation procedures before de Labor Ministry.
  
• If the strike is resolved at a general meeting by a majority of the company's employees.
  
• To support a licit strike of a similar industry or economic activity. This strike is also known as a solidarity strike; its purpose is to back a legal strike of employees of another workplace when their strike was previously ruled as legal.

If the aforementioned requirements are not met, at your request, the General Inspector General will declare that such strike is illegal.

The taking of companies by employees is illegal as well, although a legal strike can happen inside or outside of the company or establishment.

Conciliation procedures before the Labor Ministry regard the following:

There is a fifteen-day term for negotiations before the conciliator that could be extended for an additional eight-day term. When this term is lapsed, the labor union may request to start the procedures for the strike. It starts with the certification issued by the conciliator of those matters wherein no agreement was reached within the negotiation procedure and delivers the resulting file to the Labor Ministry for it to appoint the Chairman of the Strike Tribunal. At this stage of the proceeding each party may appoint up to three negotiators with their respective advisors.

The chairman of the Strike Tribunal then appoints an impartial secretary and requests from you and from the labor union to submit the names of five individuals from which the chairman will select 2 to substitute for another 2 of the 3 negotiators originally offered by each party, resulting in a Strike Tribunal comprised of a president, a secretary and three representatives of each party.

The Strike Tribunal will meet for three day which may be further extended upon agreement of the parties, and it shall deal only with those issues where an agreement was not reached. If final agreements are reached, the conflict is ended. If at the end of the meetings by the Tribunal no full agreements are reached, the Strike Tribunal will call for a General Meeting of Employees of the company or commercial establishment in order to decide by simple majority and through a direct and secret voting, whether they accept or not, those proposals that you submitted at the negotiations board.

First off, the proposals that you have made as employer, are voted on. Is the employees accept them, such circumstances are recorded and the conflict will be declared resolved. If, on the contrary, those proposals are rejected, a new voting will be carried out to determine whether employees go on strike or else submit the matter to arbitration.

Once the strike is agreed upon by the employees, the Chairman of the Strike Tribunal will declare it legal which means that you, as the employer, shall not be able to hire new employees substituting those on strike. During the strike the parties may continue negotiating either directly or with the assistance of the Strike Tribunal.

If thirty days go by and the strike and conflict persist, the strike will be suspended and the conflict will be submitted to the arbitration proceeding.

There is no way to arrive to a strike by way of a direct arrangement. If the labor union chose the direct arrangement procedure and no agreements were reached, it must start a conciliation procedure to arrive to the strike.