mexican law at the offshore group's manufacturing summit

MEXICAN LAW

Glenn McBride –

As presented at The Offshore Group’s Manufacturing in Mexico Summit.

www.offshoregroup.com

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

• SuggestionsAs presented at The Offshore Group’s

Manufacturing in Mexico Summit. www.offshoregroup.com

Historical overview

• Mexican law is based on:

• Roman Law

• Spanish Law

• Mesoamerican laws and traditions



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



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.



Reasons for the Revolution - 1910

• Political power

• Land

• Labor

• Effective Suffrage – No Reelection



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


• MADERO was the first President

after the forced exile of Porfirio

Diaz

• A great mind, but not a powerful

leader -

• Assassinated in 1913



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, 1917As presented at The Offshore Group’s


• Mexico is a democratic, federal,

representative, republic

• Executive branch – President, cabinet

• Legislative branch – 2 chamber

congress

• Judicial branch – lower courts, upper

courts, Supreme Court

Constitution of 1917



Mexico vs. USA

democratic, federal,

representative,

republic

democratic, federal,

representative,

republic

Separation of powers

– Executive,

Legislative, and

Judicial branches

Separation of powers

– Executive,

Legislative, and

Judicial branches

Individual

guarantees, social

guarantees

Bill of rights As presented at The Offshore Group’s Manufacturing in Mexico Summit. www.offshoregroup.com

Individual guarantees

• Liberty, equality, property, legal

security

• Social guarantees




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.




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



Myths and misconceptions

Bribes?



• Article 123

• STPS

• Secretaría del Trabajo y Previsión

Social

• Secretary of Labor and Social

Welfare




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 EnergyAs presented at The Offshore Group’s


Executive branch

SG– Secretary of Government

SRE - Secretary of Foreign Relations



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



Definitions

DOF -- Diario Oficial de la Federación Official Daily of the FederationNOM - Norma Oficial MexicanaOfficial 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



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



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 WAGESAs presented at The Offshore Group’s


Labor law

• PROFIT SHARING

• TRAINING OF WORKERS

• OBLIGATIONS OF WORKERS

• SOCIAL SECURITY

• DISABILITY BENEFITS

• AGUINALDO

• OBLIGATORY HOLIDAYSAs presented at The Offshore Group’s


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.



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 trainingAs presented at The Offshore Group’s


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



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 WAGESAs presented at The Offshore Group’s


Labor law

• PROFIT SHARING

• TRAINING OF WORKERS

• OBLIGATIONS OF WORKERS

• SOCIAL SECURITY

• DISABILITY BENEFITS

• AGUINALDO

• OBLIGATORY HOLIDAYSAs presented at The Offshore Group’s


• 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


Federal Labor Law

Article 123l

lFEDERAL REGULATION

OF SAFETY, HEALTH AND ENVIRONMENT IN THE

WORKPLACEl

RFSHMAT

lLabor Law Art.

133



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



• 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



• 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



• 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




• 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



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



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


Environment

• LGEEPA

• Regulations of LGEEPA for:

• Hazardous Wastes

• Environmental Impact

• Environmental Audit

• Contamination of the Atmosphere

• Noise pollution

• Ecological planning

• Recording of emissionsAs presented at The Offshore Group’s


Environmental laws

• Law of National Waters

• General Law for the Prevention and

Integral Management of Wastes



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.



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



Immigration, dual citizenship• FMN – 30 day

• FM3 visa – Non immigrant

• FM2 Visa – Immigrant

• Inmigrado – permanent immigrant

• Dual Citizenship



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


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 - LabelingAs presented at The Offshore Group’s


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


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.



Selling your products in Mexico• Testing laboratories

• Units of Verification (UVs)



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…



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 SpanishAs presented at The Offshore Group’s


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



• This has been a brief look at the way law functions in Mexico

• To be successful in Mexico,

• Familiarize yourself with Mexican laws

• Attend seminars on compliance with Mexican laws

• Learn some Spanish

• Make sure you are protected by competent people

• Visit us on the web



mexican law at the offshore group's manufacturing summit

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