The company has been operating in Mexico since 1997, with a cumulative investment of more than 400 million dollars and employing more than 300 highly trained workers. Through its subsidiaries, Enerflex is responsible for the treatment of approximately 50% of the natural gas produced onshore in Mexico, under contracts with Pemex and other private hydrocarbon producers.
In an attempt to reverse the decision of the Special Board, the subsidiaries of Enerflex filed a direct amparo before the First Collegiate Circuit Court in Villahermosa, Tabasco, in March 2022. However, to date there has been no resolution.
The history of the labor litigation
This labor litigation dates back to 2015, when a former employee filed a lawsuit against Enerflex subsidiaries and some employees. At that time, the Special Board ordered one of the subsidiaries to pay compensation to the former employee, which the company complied with. However, in 2022, the same Board issued a resolution that once again condemned all the defendants to pay much higher compensation, based on an exorbitant daily salary, which contradicts the previously established amounts.
Enerflex has called the Special Board’s award “absurd” as the daily salary of the plaintiff, a former mid-level employee, was considerably less than the amount ordered by the ruling. The company has also highlighted the contradiction of the Special Board when demanding from one of its subsidiaries the payment of lost wages that had already been paid in 2017.
Formalize request for arbitration
Enerflex has expressed its desire to continue being a long-term partner of Pemex and other operators in Mexico, contributing to the continued growth of the country’s energy market. However, the uncertainty generated by this legal conflict puts Enerflex’s future in Mexico at risk and could discourage other foreign investors from reconsidering their projects in the country.
On February 28, 2023, Enerflex notified the Ministry of Economy of its intention to submit the dispute to investment arbitration. In addition, he met with officials from the agency to express his concerns and seek a solution to the situation. However, since the conflict has not yet been resolved, the company has formalized its request for arbitration against Mexico with the aim of obtaining fair compensation for the damages suffered in its business in Mexico, in accordance with the international commitments acquired by the country.