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 Plans for aeronautic cluster
General Electric (GE) and the developer Vesta will jointly invest US$100 million in the development of a. specialized industrial park for companies in the aerospace sector in Queretaro. This park will become the first aeronautic cluster in Mexico and will have the capacity to receive around 30 Mexican and international companies in the sector, that will generate around 6,500 direct jobs.
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Russian company wins bidding to equip hydroelectric plant in Mexico
The Russian Industrial Group Power Machines. won a US$200 million (145 million) public bidding to equip a hydroelectric plant in Mexico, the Company informed last Tuesday in a press release. "Power Machines was granted an award as subcontractor in a consortium with the Mexican companies ICA and Peninsular to equip La Yesca hydroelectric station, with a 750 megawatts capacity".
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Maquila starts operations; employs 70
BHC de Mexico, a maquiladora company, started operations in Ciudad Juarez. to manufacture special access doors for roofs and floors and steel and aluminum fire air vents. Manuel Orona, the Company's Administration Manager, informed that the plant is located in Gema Industrial Park, south of the City, with an initial labor force of 70 employees.
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Sabritas expands operations in Queretaro
Based on our positive experience in our regional distribution. center in O´Donnell-Aeropuerto Industrial Park, we have decided to increase our operations and invest in the most modern packaging equipment for this particular facility, due to the quality of our people there, the outstanding quality of our building and the infrastructure, said Alberto Rubio, General Manager of the distribution center.
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Volkswagen de Mexico breaks monthly production record in August
Mexico-The Mexican subsidiary of Volkswagen. informed today that last August they broke their production record for one month with 41,806 units of automobiles and buses. The Company based in the City of Puebla, around 78 miles east of Mexico City, informed in a press release that last August the produced 41,643 automobiles and 163 buses and chassis for buses, a figure which is the largest number ever recorded by the assembler, leaving behind the 40,691 units manufactured in March 2001.
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Aernnova will build two plants in Queretaro
QUERETARO, Qro- With a US$84 million investment, the Spaniard
Company Aernnova. which manufactures aeronautic components,
announced the construction of two plants. It will therefore be the
seventh company in the aeronautics sector arriving in Queretaro, in
the cluster established to foster economy in this State.
Aernnova will generate more than one thousand jobs at the state
within the next five years, including specialized operators,
technicians, engineers and managers, the Company s President, Iñaki López Gandásegui, informed.
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BASA to be signed
On September 18 Mexico and US Governments will sign a Bilateral Aviation Safety Agreement (BASA), which will trigger development of aerospace industry in Mexico. Per the agreement sent to the Federal Commission for Regulations Improvement (Cofemer) this agreement will allow aeronautic components manufactured in Mexico to be internationally certified so that they can be sold to any company in the world.
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China displaces Mexico as US supplier
From January to June Chinese exports to the US market added to
US$148.047 billion, a 16% increase; while Mexican exports reached
US$100.881 billion a growth of barely 2.9%, according to data from
the US Department of Commerce.
Source: El Economista
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ARTICLE OF THE WEEK
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| The Mexican Social Security Institute ("MSSI") modifies the system IDSE 2 |
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 By Baker & McKenzie
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 Article 31, section I, of the Social Security Law establishes, for contribution purposes, that when due to the absence of an employee from his or her work, for a period of eight consecutive days or more, the salaries are not paid, but the employment relationship continues, the employer is released form the obligation to pay employee/employer contributions, as long as the corresponding cancellation notice is filed with the MSSI.
In the past, if the cancellation notice was filed by the employer through the IDSE System, there was no possibility to register the absences as a cause for the cancellation, due to the fact that the only cancellation causes that could be registered through said system were (i) termination agreement, identified as cause 01, (ii) voluntary separation, identified as cause 02, (iii) employment abandonment, identified as cause 03, (iv) death, identified as cause 04, (v) closure, identified as cause 05, and (vi) others, identified as cause 06.
 The Mexican Supreme Court of Justice issued a binding precedent, entitled "Work offer. The cancellation of the registry of the employee in the Social Security due to dismissal, on a date before the labor trial in which the employer offers the reinstatement, implies bad faith", in which it determined the criteria that when an employer offers the reinstatement in a labor trial, having previously canceled the registration of the employee with the MSSI and establishing as the cause for the cancellation the termination of the employment relationship, the offer of reinstatement would be considered in bad faith. The Labor Boards consider that the offers of reinstatement are in bad faith when the employers have filed the cancellation of the employees with the MSSI, because they interpret that the employer had terminated the employment relationship, without taking into consideration that the employment relationship could have continued if the cancellation of the registration with the MSSI was made due to absences, being also impossible for the employer to demonstrate that the cancellation notice had been filed in terms of Article 31, Section I, of the Social Security Law.
 With the purpose of providing certainty to the employers, the MSSI has established in the IDSE 2 System, which is used by those employers that have an electronic signature with the Institute, the possibility of registering the absences as cause of cancellation of the registration with the MSSI. Thus, from now on, when an employee is absent from his or her work, for a period of eight days or more, and the employment relationship continues, it is important to register the absence of the employee -cause (07)- as the cause for the cancellation of the registration with the MSSI.
The above will allow, in case of a labor trial in which reinstatement to the job is offered, that the offer is considered to be in good faith, because for legal purposes the employment relationship continues and only the obligation to pay employee/employer contributions is interrupted, as result of filing the cancellation notice.
Finally, the following causes for cancelling the registration with the MSSI were added (i) termination of employment with cause, identified as cause 08, (ii) retirement, identified as cause 09, and (iii) pension, identified as cause A. These causes must be correctly used by the employers to avoid labor risks.
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IMPORTANT DISCLAIMER: This document has been prepared by the Labor Practice Group of the Mexico offices of Baker & McKenzie for our clients and professional associates. This document only refers to Mexican law. While every effort has been made to ensure accuracy, no responsibility can be accepted for errors or omissions, however caused. The information contained in this document should not be relied on as legal advice and should not be regarded as a substitute for detailed advice in individual cases. No responsibility for any loss occasioned to any person acting or refraining from action as a result of material in this document is accepted by the authors or Baker & McKenzie. If advice concerning individual problems or other expert assistance is required, we would be pleased to oblige.
Baker & McKenzie authorizes you to forward, reproduce, copy, archive and distribute this document without any changes and as long as you include the copyright notice below. The distortion, mutilation, modification or edition of this document is prohibited without the author's prior consent.
All Rights Reserved © Baker & McKenzie Abogados, S.C. Mexico 2007
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| All Rights Reserved © Baker & McKenzie Abogados, S.C. Mexico 2007 |
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MEXICO'S WEEKLY HEADLINES
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| » Congress approves IETU of 16.5%
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| » PAN decides in divided voting to support tax to gasoline |
| » Government of California suspended his rejection actions to the exports of Mexican avocado |
| » Banamex would have 49% of Aeroméxico |
| » Cablevision will offer TiVo in Mexico |
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