Weekly Report 133

GENERAL SITUATION IN MEXICO

MANUFACTURING INDUSTRY

CONGRESSMEN ANALYZE CHANGES TO THE VACATION REFORM TO MAKE ITS APPLICATION MORE FLEXIBLE

The Labor Commission in San Lazaro is contemplating adjustments to the LFT reform bill that would increa se the minimum paid vacations to which workers are entitled. Although the 12-day floor approved by the Senate would be maintained, the formula would be made more flexible.

The reform to extend vacations is in the court of the Chamber of Deputies, the opinion would be voted in commissions before the end of the session and changes to the minute sent by the Senate are being analyzed. The modifications could focus on the flexibility to take vacation days and on a transition period for the imple mentation of the changes, confirmed Deputy Manuel Baldenebro Arredondo (Morena), president of the La bor Commission.

“We know that the reform comes unanimously from the Senate and I as a worker and responsible for the table have all the interest that this comes out. Althou gh it is mandatory that we have to go up to 12 days in the first year, and it will be so because we are going to get it out that way, what we are looking at -because I also listen to the voice of the workers- is that, although you can have the right to 12 days, that it is only man datory to use half of the days continuously and that the other half the workers have the freedom to decide when to take them”, said the legislator in conversation with El Economista.

As context, the ruling approved by the Senate in ad dition to doubling the minimum vacation within the Federal Labor Law (LFT) also establishes that people

MANUFACTURING INDUSTRY

must enjoy a period that may not be less than 12 con secutive days.

“We are seeking to make the issue more flexible for the benefit of the worker and also the small business man. For example, if you have a pizzeria and the pizza maker has to be absent for 12 days, maybe you need to hire another pizza maker, but if it is six days, may be if you are the owner and you know how to prepa re them, you can come in for the time being; or if it is a larger company, maybe between the other pizza maker and the apprentice we can take six days of ab sence”, he explained.

In this sense, the legislator also pointed out that in the case of companies that assign the month in which workers must take their vacations, keeping the 12 con tinuous days would leave the workforce with few ad ditional days available to have a break at another time they wish or even to have the possibility of being ab sent for family matters.

“The worker needs that flexibility and it is fair that the re are continuous days for the worker to rest, but if we force him to take the 12 continuous days and the em ployer with his vacation order assigned them to him in March and his daughter gets married in April or De cember, he no longer has a way to be absent and su rely he would like to have five days for his daughter’s wedding or for force majeure, an appointment to get his passport, for example,” he shared.

In this sense, Manuel Baldenebro ruled out that in the Chamber of Deputies the days and the staggered for mula approved by the Senate will be reduced and he trusted that before the end of the current session the ruling will be approved in committee.

In addition to making the way to take vacation days more flexible, the president of the Labor Commission in San Lazaro acknowledged that the possibility of a transition period for companies is being analyzed, al though there are many voices inside the Chamber of Deputies that are in favor of keeping the transitory ar ticles as approved by the senators.

Baldenebro Arredondo assured that the vacation re form is a priority issue and that “Mexico cannot conti nue as one of the countries with fewer days of rest”, but he considered that these points should be analyzed before approving the minutes to avoid a negative im pact on small and medium-sized companies and to improve the benefits for workers.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning

Press Conference

November 23- 29, 2022

POLITICAL AGENDA

• November 27th March: The President expressed his satisfaction with the results of the Sunday march, mentioning that it demonstrates the sol idarity and gratitude of the Mexican people. He commented that it was a peaceful march in which there was a white balance and in which there were no slogans against their adversaries. He conveyed his satisfaction with the participation of import ant actors of the movement, which demonstrates the prevailing unity, he even mentioned that yes terday’s march was attended by business leaders, among them representatives of the Business Co ordinating Council (CCE).

• Echoing his message on Sunday, the President highlighted that the main achievement of this year was the economic recovery, thanks to the actions implemented by the government of not increasing taxes, combating the increase in consumer prices and welfare programs, among others. A reporter asked about those attending the march, specifi cally questioning the presence of Francisco Cer vantes, President of the CCE. President Lopez Ob rador thanked Francisco Cervantes and Antonio del Valle for attending the march.

• Colima: The President pointed out that the feder al, state and municipal governments work in har mony for the benefit of the inhabitants of Colima. He highlighted the work of SEMAR in the admin istration of the port of Manzanillo, as this trans lates into more security. He also indicated that the customs that oversee the Ministry of Defense (SEDENA) receive more income. Regarding public safety, Rafael Ojeda Duran, Secretary of the Navy, explained that Colima ranks first in the total num ber of crimes at the national level, as well as inhome robbery, domestic violence, and intentional homicides.

• Pre-trial detention Regarding the Supreme Court eliminating the official pre-trial detention for some tax crimes, the President stated that it is very unfortunate and shameful that the ministers pro tected tax fraudsters and bill collectors. He men tioned that this is protecting “those at the top” and “white-collar crime”, he assured that yester day was a bad day for the Judiciary. He empha sized that for this reason, it is important to contin ue with the Fourth Transformation.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S

INDUSTRY

• Glyphosate: The president reaffirmed that the plan they are promoting is to eliminate this herbicide because it has been proven that it damages health, he explained that there is no “natural or biological” alternative that would help in the production pro cess and that would do what glyphosate products do. An agreement was reached for CONACyT to develop an option. Regarding the initiative for the prohibition of glyphosate, pending in the Senate, a reporter asked if the President gave the instruction to stop its discussion. In this regard, the President stated that there is an agreement to limit imports and that it is being studied whether it is harmful to health. However, he mentioned that alternatives for the use of the agrochemical must be sought.

• Chemicals in COFEPRIS: The head of the Feder al Commission for Protection against Health Risks (COFEPRIS), Alejandro Svarch, presented the “Mexican State Strategy for the Control of Chem ical Precursors and Health Protection”, which was designed in conjunction with the Ministry of the Navy (SEMAR). Among the advances of the strat egy, he presented the Integral System of Substanc es, an electronic platform that will allow real-time monitoring of the use of imported chemicals so that they are not used to produce synthetic drugs.

• Resignation of Javier Trujillo: Regarding the res ignation of Javier Trujillo from the National AgriFood Health, Safety and Quality Service (SENASI CA), the President mentioned that a replacement was necessary since the official had been in the position for more than 30 years. He stated that no decision has yet been made as to who will replace him. When asked if the resignation was requested, the President commented that he does not know

what the procedure was in charge of the Secretary of Agriculture and Rural Development (SADER).

• Vapes: The decision was made not to allow the importation and commercialization, he acknowl edged that these goods are still in Mexico, but that work will continue to control the product. In this regard, he recommended to transnational compa nies that they no longer spend a lot in Mexico on lobbyists, because corruption is no longer accept ed, and things are no longer solved that way.

• In response to a reporter’s question about the protesters who are against the construction of the Gas y Petroquimica de Occidente plant, the presi dent asked the Secretary of Environment and Nat ural Resources, Maria Luisa Albores, to address the problem, since a consultation was carried out for the construction of the plant.

• Natural resources: Andres Manuel Lopez Obrador

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S

stated that those who hand over natural resourc es to foreigners are traitors to the homeland, such as the legislators who vote against public compa nies and in favor of private and foreign compa nies, such as Iberdrola, or the policies promoted by former presidents Felipe Calderon and Ernesto Zedillo. Regarding the latter, he mentioned that he privatized the railroads, handing them over to for eigners and putting an end to passenger railroads.

• To go deeper into the above, the President exem plified the case of beer, declaring that it is irratio nal because for its production it is necessary to export water that the country does not have. He mentioned that beer production is not wrong, but that it must be in the southeast, where the resourc es are available, and not as the conservative block had allowed, in Mexicali, where water for human consumption was compromised.

INTERNATIONAL

• The President informed that US President Joe Biden will visit Mexico on January 7 and 8, 2023. He highlighted that the U.S. government request ed the meeting. He pointed out that it is very likely that a bilateral meeting with Canada will take place afterward, to be followed by the trilateral Summit to be held in Mexico City.

• Regarding the Pacific Alliance, the Mexican presi dent stressed that Chilean President Gabriel Boric will discuss the issue with Peruvian President Pe dro Castillo next week. Lopez Obrador said that he will also discuss the issue with the Colombian President, Gustavo Petro, in the next week.

ECONOMY

• IMF: The President mentioned that Mexico has had credit authorization from the International Mone tary Fund (IMF) for some time, but it is not being used. He pointed out that the country has a pub lic debt of 13 billion pesos, which in dollars is 650 million dollars. He pointed out that the reserves of the Bank of Mexico are almost 200 billion dollars. Therefore, Mexico has sufficient resources in re serves to be able to face any economic emergen cy. Thus, IMF credit, although not needed, gives investors peace of mind.

• The President mentioned that foreign investment is very important for Plan Sonora since it will recon vert the entire automotive industry using Mexican lithium. He assured that this project will be carried out within the framework of the treaty with the US and Canada.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S

• Regarding the increase in the minimum wage, the President informed that the ideal is to reach a consensus with businesspeople and workers to achieve an increase of around 20%. He comment ed that during his six-year term, an increase of 62% has been achieved in real terms, however, the min imum wage is below that of many Central Ameri can countries.

• The President informed that next Monday, De cember 4th, a report on the progress of the An ti-inflationary Plan on food will be presented; he expressed his satisfaction with the attitude of in dustrial and commercial companies, which are complying with the agreement on the price of the basic food basket, and some of them are even maintaining a lower price than the agreed price.

SECURITY

• Banamex Purchase: The President stated that the process continues. He pointed out that there are two or three interested parties in the purchase of Banamex, who have accepted the government’s conditions. It is sought that they are Mexican, that they are up to date with their taxes, that the cultur al patrimony stays in the country, and that they do not lay off workers. The President estimates that the tax to be paid for the purchase of Banamex will be around 8 to 10 billion pesos. The President pointed out that one of the participants is German Larrea of Grupo Mexico, and the other participant is Grupo Financiero Mifel headed by Daniel Beck er, President of the Banking Commission.

• Zacatecas: President Andres Manuel Lopez Obra dor lamented the murder of General Jose Silves tre Urzua, State Coordinator of the National Guard in Zacatecas. The General was killed in an oper ation that took place due to citizen complaints of kidnappings and criminal association between delinquency and municipal police. The President assured that those who ordered the aggression have already been identified and that four people have been arrested. He pointed out that he has not spoken with the governor on the subject. He mentioned that there will be a tribute in Zacate cas.

NEWS BY STATE

NUEVO LEON

During September 2022, the personnel employed in the manufacturing industry increased. 4.5 percent compared to the same period last year and 0.3 percent last month, according to the results of the monthly statistics on establishments with a program of the Manufacturing, Maquiladora and Export Services Indus try (IMMEX), carried out by the Institute National Statistics and Geography (Inegi).

COAHUILA

With the objective of promoting local supply, linking companies in the region and finding providers of any service quickly and effectively, the Investment Attraction Platform and Directory of Companies Installed in Coahuila was presented in Ramos Arizpe. This initia tive was designed as a connection tool between companies of any category and line of business, which shows com pany records, search for buyers, suppli ers and a social network. business.

NEWS BY STATE

CDMX

From December 5 to April 15 of next year, the process of delivering the Welfare Bank cards to the beneficiaries of the pension for senior citizens will be ca rried out, who will receive the bimonthly economic support in said plastic, infor med the head of government of Mexico City, Claudia Sheinbaum Pardo.

Accompanied by the head of the federal Welfare Ministry, Ariadna Montiel, she explained that 62 modules will be ins talled throughout the country’s capital, to which they must go according to the corresponding date.

STATE OF MEXICO

The Governor of the State of Mexico, Al fredo Del Mazo Maza, announced that the Emerson Automation Solutions Group will invest 470 million pesos in a Fisher Engineering Center in Toluca-Me tepec, through which it seeks to accele rate the development of innovations in the country, which will provide develop ment opportunities for young people in the State of Mexico.

The new Engineering Center will expand the presence of this international com pany in the center of the country and will develop highly specialized functions related to technical support, design, and computer-aided modeling, replicating the technology used in its Engineering Centers in India, China, and Hungary.

INVESTMENT NEWS

NATIONAL - NIDEC

Nidec plans to build a transmission factory in Mexico. It currently produces them in China and Europe and plans to produce 1.3 million EV transmissions in Mexi co by 2026. The plant could bring an investment of up to 600 million euros. It could be located in Guana juato or Nuevo Leon.

NORTHEAST - HONEYWELL

On Wednesday, November 23, Honeywell announced the expansion of the Monterrey Global Supply Chain Center of Excellence. With an investment of 3 million dollars, where 250 jobs will be generated.

CDMX

- FORD

On Friday, November 25, Ford inaugurated the Global Technology and Business Center in Naucalpan, State of Mexico. With an investment of 260 million dollars, the GTBC (Global Technology and Business Center) has a capacity for 9 thousand employees under a hy brid scheme.

CENTRAL MEXICO

- AUTLAN

The mining company Aultan is evaluating the insta llation of a new ferroalloy industrial plant in Tamos, Veracruz. It plans to invest 50 million dollars.

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