On December 18, 1937, the board gave a verdict in favor of the union by means of a "laudo" (binding judgment in arbitration) which demanded that the companies fulfil the requirements of the petitions and pay 26 million pesos in lost salaries.The petroleum companies initiated a lawsuit on January 2, 1938 before the Mexican Supreme Court to protect their property from the labor union and arbitration board, which denied the request.
The report stated that just one company (El Aguila) had received annual profits of over 55 million pesos.
These companies attempted to block the creation of labor unions and used legal and illegal tactics to do so.
However, the creation of individual unions within each company was made possible, but work conditions differed from one another.
Cárdenas ordered an investigation and on August 3, and the findings were that the Mexican oil industry produced higher returns than the U. The government entity in charge of the conflict between these companies and the union, the Junta Federal de Conciliación y Arbitraje (Federal Conciliation and Arbitration Board), was not able to make a decision quickly and the union declared a 24-hour strike in protest on December 8.
On December 18, the Arbitration Board declared in favor of the union.