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Mexican Law at The Offshore Group's Manufacturing Summit

Mexican law basics is among the topics examined at The Offshore Group's Annual For more information please visit /nhttp://www.offshoregroup.com/mexico-outsource-showcase/manufacturing-in-mexico-summit

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Mexican Law at The Offshore Group's Manufacturing Summit

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  1. MEXICAN LAW Glenn McBride – www.mexicanlaws.com As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  2. MEXICAN LAW – • Historical overview • Comparison – Mexico vs. USA • Myths and misconceptions • Terminology and structure • Labor – Health and Safety • Environmental compliance • Immigration – Visas & Dual citizenship • Selling your products in Mexico • Suggestions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  3. Historical overview • Mexican law is based on: • Roman Law • Spanish Law • Mesoamerican laws and traditions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  4. 19th Century events that shaped Mexico • Mexican War of Independence 1810 • First Constitution 1824 – basic rights, no slavery • Second Constitution 1857 – separation of Church and State • Porfiriata As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  5. Porfirio Díaz • In 1876 he overthrew the government of President Sebastián Lerdo de Tejada. He advanced a platform of reform, using the slogan "No Re-election". He stepped down after his term.The four-year period that followed was marked by corruption and official incompetence, so that when Diaz stepped up in the next election he was a welcome replacement, and there was no remembrance of his "No Re-election" slogan. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  6. Reasons for the Revolution - 1910 • Political power • Land • Labor • Effective Suffrage – No Reelection As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  7. Francisco Madero • FRANCISCO I. MADERO • 1873 – 1913 • United opposition against Diaz with the slogan • “Effective Suffrage - No reelection” As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  8. MADERO was the first President after the forced exile of Porfirio Diaz • A great mind, but not a powerful leader - • Assassinated in 1913 As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  9. Venustiano Carranza • At the end of 1916, the revolutionaries met in Querétaro to reform the Constitution of 1857. A new Constitution was promulgated on • Feb. 5, 1917 As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  10. Constitution of 1917 • Mexico is a democratic, federal, representative, republic • Executive branch – President, cabinet • Legislative branch – 2 chamber congress • Judicial branch – lower courts, upper courts, Supreme Court As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  11. Mexico vs. USA As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  12. Constitution of 1917 Individual guarantees • Liberty, equality, property, legal security • Social guarantees As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  13. Constitution of 1917 Social guarantees • Labor – Article 123 • National Resources- Article 27 of the Constitution declares that the wealth contained in the soil, the subsoil, the waters and seas of Mexico belongs to the Nation. The right to land ownership and to exploit the subsoil may therefore only be granted by the Nation. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  14. Myths and misconceptions Guilty until proven innocent? • You are innocent before the judge • The right to an attorney • The right to remain silent • Speedy and due process As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  15. Myths and misconceptions Bribes? As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  16. Constitution of 1917 • Article 123 • STPS • Secretaría del Trabajo y Previsión Social • Secretary of Labor and Social Welfare As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  17. Executive branch SEMARNAT – Secretary of Environment and Natural Resources SE (SECOFI) – Secretary of Economy SHCP – (HACIENDA) Secretary of Finance and Public Credit STPS – Secretary of Labor and Social Welfare SSA – Secretary of Health SCT – Secretary of Communications and Transport SENER – Secretary of Energy As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  18. Executive branch SG– Secretary of Government SRE - Secretary of Foreign Relations As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  19. Definitions • Constitution of 1917 • Federal Labor Law based on Art. 123 • Law - Laws are legislation passed by Congress and signed by the President • Regulation - Regulations define the processes and procedures for complying with the Law – they are part of the legislative duties of the Executive branch. • NOM – Norma Oficial Mexicana – Official Mexican Standard As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  20. Definitions DOF -- Diario Oficial de la Federación Official Daily of the Federation NOM - Norma Oficial Mexicana Official Mexican Standards are created by the DGN that detail the procedures and rules for compliance to the Law and Regulations. IMSS – Mexican Institute of Social Security As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  21. Labor law • LA LEY FEDERAL DEL TRABAJO • The Federal Labor Law based on Article 123 of the Constitution. • Responsibility of the Secretary of Labor and Social Welfare -- • STPS As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  22. Labor law • THE LABOR LAW MANDATES: • LABOR CONTRACTS • 8 HOUR DAY • 48 HOUR WEEK • OVERTIME • 12 WEEKS MATERNITY LEAVE • MINORS • VACATIONS – 6 days per year • MINIMUM WAGES As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  23. Labor law • PROFIT SHARING • TRAINING OF WORKERS • OBLIGATIONS OF WORKERS • SOCIAL SECURITY • DISABILITY BENEFITS • AGUINALDO • OBLIGATORY HOLIDAYS As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  24. Labor law • Employers assume specific and defined responsibilities and liabilities when they hire workers • All workers are given a labor contract • Employers cannot fire or lay off workers, the labor law is very strictly enforced. • There are some very specific reasons for rescinding a contract. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  25. Labor law • If you fire a worker, he will sue you (make a demanda) at the Board of Conciliation and Arbitration • The worker can ask for reinstatement, or a payment of 3 months wages plus accrued benefits • Employers must provide training As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  26. Labor law • Employers are required to enroll workers and pay social security insurance • All of this must be carefully documented • These legal responsibilities and obligations are one of the best reasons to work with a shelter. • All persons working in Mexico need to be trained and prepared for it As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  27. Labor law • THE LABOR LAW MANDATES: • LABOR CONTRACTS • 8 HOUR DAY • 48 HOUR WEEK • OVERTIME • 12 WEEKS MATERNITY LEAVE • MINORS • VACATIONS – 6 days per year • MINIMUM WAGES As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  28. Labor law • PROFIT SHARING • TRAINING OF WORKERS • OBLIGATIONS OF WORKERS • SOCIAL SECURITY • DISABILITY BENEFITS • AGUINALDO • OBLIGATORY HOLIDAYS As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  29. The 1st of January; (New Year's day) • The 5th February; (Constitution day) • The 21st of March; (Benito Juarez's birthday) • 1st of May; (Labor Day) • The 16th of September; (Independence Day) • The 20th of November; (Revolution day) • The 1st of December every six years  • The 25th of December (Christmas day) As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  30. Article 123 l Federal Labor Law l Labor Law Art. 133 l FEDERAL REGULATION OF SAFETY, HEALTH AND ENVIRONMENT IN THE WORKPLACE l RFSHMAT As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  31. Labor – Health and Safety • The Regulation is the outline for a Health and Safety Program – The NOM-STPS detail the points of the program, the procedures, rules, documentation, etc. • Currently there are 39 NOMs of which between 20 and 28 are going to apply to most Maquiladoras. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  32. Labor – Health and Safety • NOM-002-STPS-2000, Safety Conditions, Prevention, Protection and Fighting of fires in the workplace. • NOM = Norma Oficial Mexicana • = Official Mexican Standard • 002 = The number of the Standard • STPS = Secretary of Labor and Social Welfare • 2000 = The year that the NOM was published in the DOF As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  33. Labor – Health and Safety • Others….. • NOM-001-STPS-1999 Buildings, Locales, Installations And Areas In The Workplace • NOM-002-STPS-2000 Prevention and Protection against FIRE • NOM-004-STPS-1999 Machinery and Equipment • NOM-005-STPS-1998 Handling, Transport, and Storage of Hazardous Chemical Substances. • NOM-006-STPS-2001 Handling and warehousing of materials - • NOM-009-STPS-1999 Suspended access equipment, operation and maintenance – Safety conditions. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  34. Labor – Health and Safety • NOM-010-STPS-1999 Health And Safety Conditions In The Workplace Where Chemical Substances Capable Of Generating Contamination In The Labor Environment Are Handled, Transported, Processed, Or Stored • NOM-011-STPS-2001 Health and Safety Conditions in the Work Place where NOISE is generated. • NOM-015-STPS-2001 Elevated or lowered thermal conditions – Health and Safety Conditions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  35. Labor – Health and Safety • NOM-017-STPS-2001 Personal Protective Equipment - Selection, use, and handling in the workplace. • NOM-018-STPS-2000 SYSTEM FOR THE IDENTIFICATION AND COMMUNICATION OF HAZARDS AND RISKS FOR HAZARDOUS CHEMICAL SUBSTANCES IN THE WORK PLACE. • NOM-019-STPS-2005 Joint Health and Safety Commissions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  36. IMSS – Social Security • Risk rate • Certification of Health and Safety • Employers must enroll all workers in the Social Security system • Includes medical attention, hospitalization, disability, retirement As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  37. Environment • Environmental law is based on art 73 – 89 of the Constitution. • The Secretary of Environment and Natural Resources – SEMARNAT is responsible for environmental oversight • The main Environmental Law is the LGEEPA – General Law of Ecological Equilibrium and Protection of the Environment As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  38. Environment • LGEEPA • Regulations of LGEEPA for: • Hazardous Wastes • Environmental Impact • Environmental Audit • Contamination of the Atmosphere • Noise pollution • Ecological planning • Recording of emissions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  39. Environmental laws • Law of National Waters • General Law for the Prevention and Integral Management of Wastes As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  40. ENVIRONMENTAL NOM’s • NOM-001-ECOL-1996, That establishes the maximum permissible limits of contaminants in the discharges of wastewaters into national waters and resources. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  41. Environmental NOM’s • NOM-002-ECOL-1996, That establishes the maximum permissible limits of contaminants in the discharges of wastewaters to urban or municipal sewer systems As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  42. Immigration, dual citizenship • FMN – 30 day • FM3 visa – Non immigrant • FM2 Visa – Immigrant • Inmigrado – permanent immigrant • Dual Citizenship As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  43. Selling your products in Mexico • NOM-050-SCFI-2004, Commercial Information - General Labeling Provisions for Products • NOM-024-SCFI-1998 Commercial information for packing, instructions, and guarantees for electronic, electric, and electric household products. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  44. Selling your products in Mexico • N0M-030-SCFI-1993 Commercial information - declaration of quantity on the label- specifications • NOM-055-SCFI-1994 Commercial Information - Materials that are retardants and/or inhibitors of flame and/or ignition - Labeling As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  45. Selling your products in Mexico • NOM-003-SCFI-2000 Electrical products - Safety Specifications • NOM-016-SCFI-1993 Electronic devices – Electronic devices for Office use powered by different sources of electrical energy – safety requirements and testing methods. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  46. Selling your products in Mexico • NOM-001-SCFI-1993 Electronic appliances - electronic appliances for domestic use powered by different sources of electrical energy - safety requirements and testing methods for the approval of class. As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  47. Selling your products in Mexico • Testing laboratories • Units of Verification (UVs) As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  48. Suggestions • If you are working with a shelter, the shelter company has legal responsibility for complying with the workplace Standards and Labor Law • But… • You can help avoid problems and make compliance easier by… As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  49. Suggestions • Assuring the shipments of materials you send to Mexico are: • Carefully documented with valid Certificates of Origin • MSDS in Spanish • Careful inventories that include everything • Quality specifications, manuals, instructions, etc. in Spanish As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

  50. Suggestions • Training for Mexican personnel • Training for U.S. personnel working in Mexico • Work Visas, FM3, FM2 or FMN for personnel visiting or working in Mexico • Timely communication, and realistic schedules, remember you have the border to cross • Respect and sensitivity to Mexican culture and institutions As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

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