Chile and Mexico see surge in labor lawsuits and complaints

In Chile, the number of cases filed in labour courts almost tripled between 2021 and 2025, rising from 35,450 to 112,083 according to data from the Observatorio Judicial. Wrongful‑dismissal claims grew 262% to 64,287 cases in 2025, representing 57.4% of all labour filings. The overload prompted the approval of a project to create a third labour court in Santiago and to increase judge staffing across jurisdictions.

In Mexico, 48 labour complaints have been lodged under the T‑MEC Rapid Response Labor Mechanism since the agreement took effect in 2021, all against Mexican companies and none against U.S. or Canadian firms. The mechanism is triggered by a single complaint against Mexico, while complaints against the other partners require prior domestic resolutions. Most complaints target the automotive sector, involving firms such as General Motors, Volkswagen de México, Goodyear and Pirelli, and come as Mexico's labour reforms raise the real minimum wage, create specialised labour courts and require secret ballot approval for collective agreements.