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March 2010 Report

03/31/2010

Senators of the National Action Party (PAN) and Revolutionary Institutional Party (PRI) introduced a bill that would allow full ownership to foreigners.
Senators of the two most important parties in Mexico, PAN and PRI, introduced a bill that reforms article 27 of the Mexican Constitution in order to promote foreign investment and cooperate with foreign States in the opening of new consular offices.

Through this modifications any foreign person (whether it is an individual or company) would have the chance to acquire the full domain of real estate as well as water and mining concessions in all Mexican territory without being excluded, through government authorizations or trusts, of the restricted zone (50km from seas and 100km from land frontiers).

Also, this reform would allow foreign Estates to acquire the necessary real estate in Mexican territory in order to open their consular offices in other Mexican cities.

If approved, this reform would be a great move by Mexico to call for more foreign investment and demonstrate that we have leaved behind our past centuries’ nonsense fears and bureaucratic processes.

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The Green Ecologist Mexican Party (PVEM) against junk food.
With the intention to promote a healthy way of eating, Senators of PVEM introduced a bill that would tax with VAT all junk food. The bill establishes the requirements for it to be considered as junk food, thus being taxed.

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The Democratic Revolution Party (PRD) introduced a bill that creates the Federal Lobbying Law.
PRD’s senators introduced a bill that creates the Federal Lobbying Law. This law pretends to make the lobbying a transparent and public activity, creating for such purpose a public registry that would include the names of lobbyists, their clients, the purpose of the lobbying as well as the information used in the lobbying activity.

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Representatives of the Institutional Revolutionary Party (PRI) proposed more measures against obesity.
Representatives of the PRI introduced a bill that will force restaurants to include the total calories of the products offered in their menus and create healthy menus for children and adults.

The bill will also obligate the producers of foods and non-alcoholic beverages to include easy reading nutritional information and provide the percentage of daily values of each product.

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Representatives of the National Action Party (PAN) introduced their labor reform.
This past March 18, 2010, the Congress lower chamber members of PAN presented the initiative to amend the Federal Labor Law, which could be summarized in 5 main categories.

  • Access to Employment and Productivity.
    • “Season for season” and� “initial training” hiring for 3 months, and permanent employment with a 30 days “trial period” for regular employees and 180 days for managerial positions.
    • Vacant positions will privilege productivity, capacity, aptitude, punctuality and assistance over seniority.
    • Mandatory multitasking.
    • Training and skill enhancement will have a productivity focus.
    • Regulations for the Tele-work, made from home or out of the office using Internet.
    • Agreement by the parties to pay per hour for the rendering of service.
  • Gender Equity and Non-Discrimination.
    • The employer must have adequate installations for the access and performance of activities by disabled employees.
    • Prohibition to request pregnancy medical certificates upon hiring, permanency or promotions.
    • New protective measures for working mothers.
    • Sexual harassment as a cause for rescission.
    • Mandatory affiliation by employers to the National Fund for Consumption Institute (“FONACOT”).
    • Improve the conditions of domestic employees.
    • Strengthen the regulation on hiring Mexican employees to work abroad.
  • Justice Procurement.
    • Limit the accrual of back wages to 6 months in case of a trial.
    • Exempt the employer to reinstate an employee with seniority less than three years at the moment of the dismissal.
    • Mandatory arbitration in strike conflicts.
    • Limit the procedures for entitlements and notice to intent to strike for signature of a collective bargaining agreement.
    • Declare the inexistence of the strike in case the union does not comply with the requirements for the notice provided in its own statutes.
    • Deny the notices to intent to strike due to breach of a collective bargaining agreement or law agreement, when the violations and the form of remediation are not established.
    • Respect the third party rights for the restitution of the possession of their assets, in case of strikes.
    • Summary procedures for social security individual conflicts.
    • Use of technological tools in the procedures.
    • Mandatory free, direct and secret voting in the recount evidence fulfillment.
  • Union Transparency.
    • Obligation of the unions to publish information regarding the management of the patrimony.
    • The unions with more than 150 members should be audited by an external auditor.
    • Publish in Internet the union registries; collective bargaining agreements and internal shop rules.
    • The election of the union officers should be through free, direct and secret voting.
    • Elimination of the mandatory discount of union dues.
    • Suppress the called “exclusion due to separation clause” from the collective bargaining agreements.
  • Labor Authorities.
    • The hiring of employees less than 14 years of age, out of the family circle, will be considered a felony.
    • Regulate the sub-hiring, third party hiring or outsourcing.
    • Enable the authorities to immediately close the plants, when there is an imminent danger to the health or life of the employees.
    • Mandatory use of the verification units in case of high risk activities.
    • New rights and obligations to employers and workers regarding sanitary contingencies.
    • Increase in the amount of the sanctions to the Law.