Issuu

GENERAL SITUATION IN MEXICO

Weekly Review # 75 I October 13, 2021

MANUFACTURING INDUSTRY

U.S. ADDS US$50 MILLION INVESTMENT TO PROMOTE MEXICAN LABOR REFORM The U.S. Department of Labor, through the Office of International Labor Affairs, has implemented at least 10 projects in the last two years that seek compliance with Mexican labor laws, mainly in the automotive sector, support for the Federal Center for Labor Conciliation and Registration, agriculture and temporarily canceled the one related to the inspection that was to start operating this year. The total budget allocated by the U.S. government -under the USMCA-, for Mexico is 180 million dollars, of which 50 million have already been used for more than 10 projects, among which the Federal Center for Labor Conciliation and Registration stands out, as it deals with all the digitalization found in the Conciliation Boards that will tend to disappear as the implementation of the new labor model progresses. Also, employers in the automotive sector, particularly small and medium-sized companies, face significant challenges in complying with these reforms and are often unaware of their new responsibilities and obligations.

Projects such as “Strengthening the capacity of workers to exercise their labor rights in Mexico,” “Awareness-raising in Mexico,” and “Improving the occupational safety and health of workers in selected supply chains in Mexico” are also underway, in addition to the call for proposals to promote “Increased compliance with Mexican labor legislation and international labor standards by the tomato and chili sectors in Mexico,” for which five million dollars could be spent. On October 4, the U.S. Department of Labor announced the financing of 5 million dollars to combat labor abuses by employers in the supply chains of Mexico’s tomato and chili sectors. It purchases 85% and 72% of this product, respectively. This project is scheduled to run for four and a half years. It seeks to help states such as Baja California, Baja California Sur, and Chihuahua eliminates child and forced labor, improve working conditions and empower workers.

MANUFACTURING INDUSTRY COMPANIES WITH SPECIALIZED SERVICES TO BE INSPECTED IN THE SECOND STAGE OF OUTSOURCING REFORM The 63,000 companies registered in the Registry of Specialized Service Providers (REPSE) are subject to inspection by the Ministry of Labor and Social Welfare (STPS) in two cases: when there are complaints about the use of the registry to maintain subcontracting schemes that are not specialized services, and if they have submitted false documentation to comply only with the registration. This was informed by the head of the Decent Work Unit, Alejandro Salafranca, after detailing that the labor authorities will start with the compliance inspection stage of the companies that concluded with their registration, to which 71,000 companies were added, of which 93% received a reply, 88% of them positive and the remaining 12% negative. Although this is not a massive inspection, Salafranca commented that these would be strategic inspections focused on registrations seen as red hot spots, according to the data analysis. The head of the Decent Work Unit of the STPS announced that, as of September 1, the date on which the transitory term to register in the REPSE and continue enjoying its tax benefits ended; however, the registry is still in operation and adding companies every day, so he urged those who have not complied with the procedure to do so, in order not to fall into illegality because the consequences of acting outside the law are strong.

GOOD NEWS WE ARE STRONGER WHEN WE WORK TOGETHER, SAYS BIDEN IN A LETTER SENT TO AMLO

The president of the United States, Joe Biden, responded to the letter sent by his Mexican counterpart Andres Manuel Lopez Obrador on the immigration issue. “We are stronger when we work together, and I look forward to our joint efforts to come,” says the letter read this Monday during the morning conference by Foreign Minister Marcelo Ebrard. On September 17, Lopez Obrador announced that he would send Biden a letter to address the immigration issue. The letter was delivered by the Secretary of Foreign Relations to Antony Blinken, Secretary of State of the United States, during the high-level dialogue that they held in CDMX. Biden’s letter is dated October 6. Biden´s letter to Andres Manuel Lopez Obrador: Receive my sincere congratulations again on your recent bicentennial celebration. There is no better time for us to transform our bilateral relationship than when we partner on vital issues such as migration, trade, development, security, and conservation. As we approach the 200th anniversary of relations between our countries, we can reaffirm our commitment to improving the lives of our people and setting a course for the future. Thank you for your letter dated September 7, in which you describe your approach to managing migration. We share the vision of an immigration system that humanely protects our respective borders, expands legal avenues for Americans and protection in the United States, considers asylum claims reasonably and efficiently, reduces irregular migration, and ad-

dresses the root causes of migration. That is why, since I took office, I have redirected the resources of the unnecessary border wall towards proven investments, such as technology and modernization of land ports of entry. We are working to improve processing and identify better people who have legitimate claims for asylum and other forms of protection while quickly weeding out those who do not. I have made it clear to the United States Con-

gress that it is also time for them to provide a path to citizenship and a legal, fair, and efficient immigration system. We agree that the most effective and sustainable way to deter potential migrants from fleeing their homes is by addressing the root causes of migration, lack of economic opportunities, weak governance, corruption, violence, and insecurity. That is why I have intensified our commitment to Central America. My administration outlined a comprehensive approach based on the lessons learned at the forefront of this effort as Vice President of the United States. A fundamental aspect of that approach is our partnership with Mexico to ensure that regional migration is safe, orderly, and humane. As Vice President Harris discussed with you, addressing the root causes of mirroring is one of our administration’s top priorities, which is why I asked that you lead my entire administration effort in that direction. The United States has provided more than $ 600 million in international assistance to El Salvador, Guatemala, and Honduras in the past year. I have also asked the United States Congress for an additional $ 861 million in my budget for the fiscal year 2022 for Central America. Through various programs, we are addressing economic insecurity, inequality, the fight against corruption, security, and gender violence in Central America, and challenges that drive people to make the difficult decision to leave. I look forward to working with you to expand our cooperation, specifically increasing southern Mexico and Central America’s investment. I was pleased to see our development agencies traveling together to El Salvador to identify new opportunities. I am grateful for the financing and implementation of your government in the north of Central America of the Youth Building the Future and Sembrando Vida programs to provide employment and training to youth and provide sustainable income to poor rural families in communities with high emigration. The United States

SOURCE: today in-24 com / El Financiero

is also piloting conditional cash transfer programs in the region. We are interested in drawing on observations and lessons from existing programs and being implemented in Central America, sharing best practices, and considering a possible joint pilot activity. We both know that economic competitiveness is a cornerstone of these efforts. Your letter mentioned the need to raise the living conditions of the most vulnerable in our region: a goal that I deeply share. The relaunch of the High-Level Economic Dialogue recognized for the first time the need to ensure that economic growth reaches those who would otherwise be left behind. I am pleased to see a complete and respectful resumption of our partnership in se curity, which is central to all that we hope to achieve together. I look forward to discussing with you how we can make our North American region more dynamic. Our past and present are intertwined, as well as our future. I know that on this solid foundation of partnership, we can approach this regional challenge in a way that stands firm, with the hopes that each one has for our countries. We are stronger when we work together, and I look forward to our joint efforts to come. Joe Biden President of the United States of America.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference October 6-12, 2021

COVID-19 UPDATE The Undersecretary of Prevention and Health Promotion, Hugo Lopez Gatell, mentioned a 30% reduction in infections, the most notable decrease.

governors should be the ones with direct resources and that beneficiaries of the social programs should also receive the money directly and not through organizations or intermediaries.

FISCAL AGREEMENT Regarding the intention of certain governors to leave the Fiscal Pact, the President declared that corruption must be ended and the state governments should be managed with austerity. He mentioned that the current Administration seeks tax contributions to increase, that those who have more pay more and that there is no intention to modify the Fiscal Coordination Law to deliver more money to the states with high levels of corruption. He commented that the governors have the right to present constitutional controversies or make consultations to modify the law.

ELECTRICAL REFORM The secretary of energy, Rocio Nahle, presented the main details of the initiative sent to the Congress of the Union. The most important highlights of the initiative are the following: • CFE will go from being a productive company to being a State agency, thereby abolishes the legal separation of its subsidiaries and affiliates. The CFE will work as an integrated company for generation, distribution, transmission, commercialization, procurement, sale, among others. • It is proposed to eliminate legacy contracts. • The private sector will be able to continue participating in 46% of the electricity market, and it is not foreseen a nationalization or expropriation.

TRANSITION OF STATE GOVERNMENTS The President mentioned that he seeks to eliminate the delegations of the federal government in the states since these translate into duplication of tasks and greater expenditure. He said that the idea is that the

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA The State of Baja California remains considered as medium-risk or yellow light. Official reports confirmed 1,779 active cases in the last week, with hospital occupancy at 53.12%. The vaccination plan continues this week with the first and second dose of Astra Zeneca and the second dose of Pfizer and Sinovac to adult populations in Tijuana, Ensenada, San Quintin, and Mexicali. The percentage of the population with a complete vaccination scheme is 80.68%. Baja California’s Health Secretary remained to the population about the registration for vaccination in adolescents from 12 to 17 years old with comorbidities through the official website and telephone numbers.

SONORA The State of Sonora is considered medium-risk tier or yellow light, with only three municipalities out of 72 in the low-risk tier or green light. 40 new cases were reported in the past 24 hours. The vaccination plan continues with applying the second dose of Astra Zeneca and Pfizer to adult populations in different municipalities.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA The Delegate of the Federal Government in Coahuila, Reyes Flores Hurtado, announced that the following week the vaccination process of the second dose of people from 30 to 39 years of the Municipality of Saltillo would continue. He also reported that the second dose vaccination process could be started for young people between 18 and 29 years old in the industrial sector to whom the biological Pfizer has been applied. TAMAULIPAS It will be from Wednesday, October 13, when the application of the COVID-19 vaccine is resumed. It is expected that girls, boys, and adolescents between 12 and 17 years old will be contemplated in Tamaulipas. NUEVO LEON The governor of Nuevo Leon, Samuel Garcia Sepulveda, announced that since COVID-19 infections continue to decrease, there will be a return to faceto-face classes without capacity restrictions for public and private schools, starting next Monday, October 11. It is estimated that more than 6,000 schools will be back in the state.

MEASURES TAKEN BY STATES IN MEXICO

QUERETARO The Governor of the State of Queretaro, Mauricio Kuri Gonzalez, informed that by the decision of the Technical Committee on Health, the state would return to Scenario A for COVID-19. With this, there will be a greater opening of public spaces and improvements in the economy of Queretaro’s citizens. He assured that the evaluation and monitoring of the scenario would be carried out constantly. It would be the responsibility of all citizens to maintain the opening of the spaces, so he asked not to lower their guard in the presence of the coronavirus. On the other hand, he explained that currently, hospital occupancy is 30 percent. Based on these figures, the possibility of greater openness and flexibility in returning to the spaces will be evaluated.

JALISCO Between Monday, October 4 and Friday, October 8, 501,100 vaccines against COVID-19 were applied in Jalisco, the largest amount in a single week and which alone represents what is applied in one day in the whole country. The head of the Ministry of Health of Jalisco (SSJ), Fernando Petersen Aranguren, highlighted the efforts of the personnel involved in the campaigns to safeguard, mobilize and apply each vaccine. Last night, the Secretary of Health headed the reception of a shipment of 200,000 vaccines from the AstraZeneca laboratory, corresponding to the 41st delivery for Jalisco, which will be destined for the supply of first doses to people between 18 and 29 years of age and second doses for the 30 to 39 age group.

MEASURES TAKEN BY STATES IN MEXICO

AGUASCALIENTES With data until October 11, the pace of the third pandemic wave will require more beds available in the critical and floor areas of the converted hospitals since saturation once again reached the ISSSTE Hospital. The technical report mentions that Aguascalientes already has 34,499 cases of people infected by the coronavirus after 77 more cases were confirmed during the previous day, while active cases had a slight decrease from 706 to 692, which does not mean that the risk level of infection has decreased. Those that did increase significantly were the cases that have been discarded since, with 217 more, the total number of negative cases was updated to 81,150. At the same time, 66 were added to the list of suspected cases, thus reaching 11,600. The number of people who suffered and overcame the coronavirus reached 27,301, adding the 84 cases released during the day. The total number of fatalities due to the pandemic reached 4,021 in Aguascalientes.

GUANAJUATO The following are the municipalities in Guanajuato where the Covid vaccine 18 to 29 years old will be administered. Single dose Cansino: Uriangato, Purisima del Rincon, San Francisco del Rincon, San Felipe, San Jose Iturbide, San Luis de la Paz, Apaseo El Alto, Apaseo El Grande, Juventino Rosas, Moroleon. Astrazeneca First Dose: Irapuato, Dolores Hidalgo. The Ministry of Guanajuato reported a hospital occupancy rate of 22.5%. According to the agency, 133 of the people hospitalized are in serious condition, and 51 are in critical condition.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO As part of the Vaccination Strategy against COVID-19 carried out by the Governments of Mexico and the State of Mexico, in coordination with the municipalities of the State of Mexico, starting on Monday, October 11, the application of the second dose of the vaccine will begin for people between 30 and 39 years of age in seven municipalities and between 18 and 29 years of age in 10 other districts.

CDMX According to Mexico City data, as of September 5, 2021, the city has issued a total of 79,735 death certificates in the Civil Registry in which it was specified that the cause of death of people was due to COVID-19 or there was suspicion of the disease. Of this total, according to data from the Digital Agency for Public Innovation, 12.6% of the deaths occurred at the victim’s home, that is, a total of 10,076. Concerning registration by year, the data showed that in 2021 a total of 6,470 death certificates were issued for persons who died of COVID-19 or suspected COVID-19, while in the previous year, the figure was 3,606. Experts mentioned that it is not surprising since, from the beginning of the pandemic, Mexico did not have enough intensive care beds or the capacity to ventilate many patients artificially. So probably some of these patients even requested care and could not be given it promptly and died at home.

ECONOMIC GROWTH IN MEXICO

Mexico’s recovery from the COVID-19 pandemic, key government investment initiatives, and the mobilization of private capital to stimulate inclusive and sustainable development were the subject of the meeting that the Secretary of Finance, Rogelio Ramirez de la O, held with the President of the World Bank Group, David Malpass, on Monday in Washington. “President Malpass and Secretary Ramirez de la O discussed Mexico’s recovery from the COVID-19 pandemic, key government investment initiatives, and the mobilization of private capital, including through securitization and other capital market instruments, to stimulate inclusive and sustainable development,” the international organization said in a statement.

SOURCE: El Financiero

The two officials reviewed efforts to support Central American countries, address regional development challenges, and discussed shared development priorities, including debt relief for the poorest countries and increased development financing. “A pleasure to meet with Mexico’s Secretary of Finance, Rogelio Ramirez de la O this afternoon. We discussed Mexico’s economic recovery, efforts to support Central America, and shared development priorities,” David Malpass wrote on his Twitter account. This week, the fall meetings of the World Bank and the International Monetary Fund (IMF) are being held from Washington in a virtual format with high-level face-to-face meetings.

TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON OCTOBER 11, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 2,007

SOURCE: https://www.gob.mx/salud/

CONFIRMED CASES: 3,725,242

NEW DEATHS REPORTED: 141

CONFIRMED DEATHS: 282,227

INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

National rate 36.25

0 to 10.0 (2 states)

40.1 to 50 (3 states)

10.1 to 20 (9 states)

50.1 to 60 (1 states)

20.1 to 30 (9 states)

60.1 to 70 (1 states)

30.1 to 40 (4 states)

>70 (3 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of October 11, 2021, globally there have been reported 236,599,025 confirmed cases (450,970 new cases) of COVID-19 and 4,831,486 deaths (7,880 new deaths*). Lethal rate: 2%.

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF OCTOBER 12

DEATH INCIDENTS IN POPULATION BY REGION AS OF OCTOBER 12

SOURCE: https://www.gob.mx/salud/

PUBLIC AFFAIRS

WHY DO WE PREFER WORKING WITH COMPANIES THAT ENGAGE WITH THEIR COMMUNITY?

YOELLE ROJAS Public Affairs & Communications Director

People trust companies that work actively to make a positive change in the community and their surroundings. Why? Because it generates trust, and we connect from our values. Once you gain people’s trust and loyalty, you must maintain and nurture those relationships. Like any other relationship, it isn’t easy to measure how the community and employers perceive us. A good thermometer is social listening. It is the perfect tool to monitor and hear the conversations about our stakeholders’ companies on social media. This method will provide us information of who is talking about the company; if people are having a positive or negative conversation about the company, products, or experience with us. Some of the benefits are: • To learn more about your community’s expectations and needs. • To learn about the sentiment trends concerning your company and the impact on the surroundings. • To understand who your audience is (age, interests, activities, etc.) • It will provide a 360° view of conversations around your company. • Understand how your employees feel working in the company. Implementing social listening in your communication strategy will help you avoid costly mistakes and start talking the same language as your community. Transform your narrative and start being trustable and engage with your stakeholders. We have proven experience assisting companies to succeed in their communication strategy. We can guide you in this journey.

EHS LABOR

17 REPSE COMPLIANCE INSPECTION The Ministry of Labor and Social Welfare (STPS) has officially announced the beginning of the first phase of the Compliance Inspection of the Registry of Specialized Services and Specialized Works Providers (REPSE). Last September 1, the new provisions regarding the subcontracting of specialized services came into force, both in their labor and tax effects. Hence, the authority is now ready to begin the verification of compliance. In this initial phase, the labor authority will not carry out massive inspections. Instead, they will be strategic, focused both on complaints and inconsistencies resulting from the analysis of the data registered by the companies before the new public registry.

ALVARO GARCIA HR, Vice President

Seventy percent of the information registered by the companies in the REPSE is self-declared, in good faith, so now the STPS inspectors will verify that the information declared by the companies is accurate.

WHO IS ELIGIBLE FOR A COVID-19 VACCINE BOOSTER SHOT? Older adults and 50-64 year old people with medical conditions People aged 65 and older and adults 50–64 years with underlying medical conditions should get a booster shot of the Pfizer-BioNTech vaccine. The risk of severe illness from COVID-19 increases with age and can also increase for adults of any age with underlying medical conditions. Long-term care setting residents aged 18 years and older Residents aged 18 years and older of long-term care settings should get a booster shot of the Pfizer-BioNTech vaccine. Because residents in long-term care settings external icons live closely together in group settings and are often older adults with underlying medical conditions, they are at increased risk of infection and severe illness from COVID-19.

DAVID ANTUNEZ Environmental, Health, and Safety Director.