Wayzata World Factbook 1996/The World Factbook - 1996 Edition - Wayzata Technology (3079) (1996).iso/pc/text/economic/mexico.txu

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U.S. DEPARTMENT OF STATE
MEXICO: 1994 COUNTRY REPORT ON ECONOMIC POLICY AND TRADE PRACTICES
BUREAU OF ECONOMIC AND BUSINESS AFFAIRS




    Although raids by federal authorities led to the
confiscation and destruction of several million pirated audio
and video cassettes between 1992 and the end of 1994, music
industry sources estimate that two out of every three audio
tapes sold in Mexico still are pirated products (an annual loss
of about USD 240 million).  These raids have affected street
vendors and have closed some pirate cassette fabrication
operations.  However, the ease in which pirate tapes may be
fabricated and the continued growth of the informal sector
economy create a major challenge for the Mexican Government.
In an effort to put teeth into its IPR laws, the Mexican
Government formed a commission in October 1993 to cut through
the bureaucratic obstacles hindering effective action.  Much
work remains to be done in combatting piracy in Mexico, but the
Mexican authorities have demonstrated their interest in making
substantial progress in intellectual property enforcement.


8.  Worker Rights

    For an introduction to the Mexican labor law, see "A Primer
on Mexican Labor Law" (USDOL) and "A Comparison of Labor Law in
the United States and Mexico an Overview" (USDOL 1992).  In
general, worker benefits mandated by law include paid
vacations, maternity leave, end-of-year bonuses, generous
severance packages, mandatory profit sharing and social
security coverage, including comprehensive medical care, plus
mandatory individual savings and retirement accounts to which
employees and employers must contribute.

    a.  The Right of Association

    The Mexican Federal Labor Law (FLL) gives workers the right
to form and join trade unions of their own choosing.  Mexican
trade unionism is well developed with thousands of unions and a
number of labor centrals.  Once formed, unions must register
with the labor secretariat or equivalent state government
authorities to acquire legal status to function.  In theory,
registration requirements are not onerous, involving the
submission of basic information about the union.  However,
there are allegations that the federal or state labor
authorities use this administrative procedure improperly to
withhold registration from groups considered disruptive to
government policies, employers, or unions.  Unions and labor
centrals are free to join or affiliate with international trade
union organizations and do so.

    b.  The Right to Organize and Bargain Collectively

    The FLL strongly upholds the right to organize and bargain
collectively.  On the basis of only a small showing of interest
by employees, or a strike notice by a union, an employer must
recognize the union concerned and make arrangements for a union
recognition election or to negotiate a collective bargaining
agreement.  The degree of private sector organization varies
widely by states; while most traditional industrial areas are
heavily organized, states with a small industrial base usually
have few unions.  Workers are protected by law from anti-union
discrimination.  Collective bargaining had been
institutionalized in many sectors in the "Contrato Ley,"
industry or sector-wide agreements that carry the weight of law
and apply to all firms in the sector whether unionized or not,
but this is less-and-less common.

    c.  Prohibition of Forced or Compulsory Labor

    The constitution prohibits forced labor.  There have been
no credible reports for many years of forced labor in Mexico.

    d.  Minimum Age for Employment of Children

    The FLL sets 14 as the minimum age for employment by
children.  Children age 14 to 15 may work a maximum of six
hours, may not work overtime or at night, and may not be
employed in jobs deemed hazardous.  In the formal sector,
enforcement is reasonably good at large and medium-sized
companies; less pervasive at small companies.  As with employee
safety and health, the worst enforcement problem lies with
small companies and the informal sector.  Eighty-five percent
of all registered Mexican companies have fifteen or less
employees, indicating the vast scope of the enforcement
challenge just within the formal economy.  In 1992, the Mexican
Government increased from six to nine the minimum number of
years that children must attend school and made parents legally
liable for their children's non-attendance.

    In 1991, the Secretariat of Labor and Social Welfare (STPS)
and the U.S. Department of Labor undertook joint studies of
both the child labor problems and the nature of the informal
economies in Mexico and the United States.  The studies were
published in late 1992 and are serving as a basis for
cooperative efforts to discourage child labor in both our
countries.  In 1993, the International Labor Organization (ILO)
was developing a national action plan against child labor with
the Mexican Government's Social Development Secretariat
(SEDESOL).  There were also Mexican government and
non-governmental organization media campaigns to convince
parents to keep their children in school.

    e.  Acceptable Work Conditions

    The Constitution and the FLL provides for a minimum wage
for workers, set by the Tripartite National Minimum Wage
Commission (government/labor/employers).  In December 1987,
this commission agreed on an accord to limit wage and price
increases, which has since been renewed annually.  Generally in
the private sector in the past few years, wages set by
collective bargaining agreements have kept pace with inflation
even though the minimum wage did not.  In January 1994, the
minimum wage was increased.

    The FLL sets 48 hours as the legal workweek and provides
that workers who are asked to exceed three hours of overtime
per day or work any overtime in three consecutive days be paid
triple the normal wage.  For most industrial workers,
especially unionized ones, the real workweek has declined to
about 42 hours.  Mexico's legislation and rules regarding
employee health and safety are relatively advanced.  All
employers are bound by law to observe the "General Regulations
on Safety and Health in the Work place" issued jointly by STPS
and Mexico's Institute of Social Security.  The focal point of
standard setting and enforcement in the work place is in
FLL-mandated bipartite (management and labor) safety and health
committees in the plants and offices of every company.  These
meet at least monthly to consider work place safety and health
needs and file copies of their minutes with federal or state
labor inspectors.  Government labor inspectors schedule their
own activities largely in response to the findings of these
work place committees.



  Extent of U.S. Investment in Selected Industries.--U.S. Direct
Investment Position Abroad on an Historical Cost Basis--1993

                    (Millions of U.S. dollars)

              Category                          Amount

Petroleum                                                (1)
Total Manufacturing                                   10,802
  Food & Kindred Products                   2,334
  Chemicals and Allied Products             2,392
  Metals, Primary & Fabricated                (1)
  Machinery, except Electrical                (1)
  Electric & Electronic Equipment             605
  Transportation Equipment                  2,218
  Other Manufacturing                       2,438
Wholesale Trade                                          823
Banking                                                  (1)
Finance/Insurance/Real Estate                            912
Services                                                 316
Other Industries                                       2,258
TOTAL ALL INDUSTRIES                                  15,413

(1) Suppressed to avoid disclosing data of individual companies

Source: U.S. Department of Commerce, Bureau of Economic
Analysis
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