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GENERAL SITUATION IN MEXICO

Weekly Review # 87 I January 12, 2022

MANUFACTURING INDUSTRY COVID 3.0 PERMIT: IMSS ENABLES A PLATFORM FOR REQUESTING TEMPORARY INCAPACITY The Mexican Government enabled a platform to request a temporary disability due to COVID-19 infection. Zoe Robledo, General Director of the Mexican Social Security Institute (IMSS), informed this Tuesday that the platform has been available since one day before. Its purpose is to avoid procedures for sick people. “It is the third version, the COVID 3.0 permit for workers with symptoms or asymptomatic with COVID infection, and to avoid transfers and the need to have in all cases a confirmatory test, they can do it online, in the IMSS DIGITAL app,” Robledo explained in a video posted on his Twitter account. HOW TO OBTAIN THE COVID 3.0 PERMIT? You can find the COVID permit on the official IMSS website. The page explains to workers that if they have symptoms caused by COVID-19, they can complete an IMSS questionnaire on symptoms and process a special permit. The questionnaire is used to refer possible infected persons to a Social Security Respiratory Care Module for a medical evaluation. After going to the module, if a COVID test was performed, workers can enter the platform to process an initial COVID permit while waiting for the lab result. If the result is positive, workers have up to three calendar days to apply for a COVID permit.

SOURCE: El Financiero

To obtain the permit will require having on hand data such as CURP, ZIP Code, and a contact phone number. “Already with the COVID Leave approved, you only have to notify your work center to justify the absence,” Zoe Robledo abounded in a statement. This COVID permit has a duration or validity of seven days for people with symptoms and up to five days for asymptomatic people who have a positive test.

KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference January 12-18, 2022 PRESIDENT’S HEALTH The Secretary of the Interior, Adan Augusto Lopez Hernandez, replaced President Andres Manuel Lopez Obrador in the morning conference, who resulted positive in COVID by a second time and is isolated, continuing with his responsibilities. COVID- 19 SITUATION The Secretary of Health, Dr. Jorge Alcocer, reported that as of January 10, 2022, they had been delivered to public health institutions 1,127,630,594 pieces of medical supplies: • Medical supplies delivered in the last 14 days: 60,479,791 pieces. • Medical supplies in transit: 13,627,143 pieces. • SEDENA-SEMAR-GN-BIRMEX distribution plan: 75,402,710 pieces delivered. National Vaccination Strategy: • 82,482,249 vaccinated people, that is, 88% of the population over 18 years of age. • 51% of older adults have received the booster dose. • 3,705,649 people between the ages of 15 and 17 have been vaccinated. REVOCATION OF MANDATE The President indicated that his government seeks to establish the method of revocation of the mandate and create a precedent so that people can choose if an authority should leave his /her position. He added that power is a temptation, just like money.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

CCE (COORDINATING BUSINESS COUNCIL) MEETING WITH THE PRESIDENT The President affirmed that an investment package with public participation is being prepared, and the Secretary of Finance is working with the Coordinating Business Council (CCE). He commented that it is not the only initiative that the government is promoting for the country’s development, “it should be borne in mind that a very active economic relationship is maintained through the trade agreement” (TMEC). He assured that companies continue to be created to strengthen the North American economic integration. ECONOMIC AND SOCIAL INFORMATION López Obrador pointed out that the first Thursday of each month will be used to report on economic and social information such as income, debt, inflation, job creation, stock market, the price of basic goods, and salary in addition to the quarterly reports. Inflation: Lopez Obrador commented that it is the most important challenge since the indicator reached 7.37% in November. However, he added that it is an external phenomenon that various countries are suffering. The President pointed out that he expects it to be transitory since it depends on various factors that occurred due to the pandemic.

2022 AGENDA The President announced the Executive’s agenda in 2022: 1. Guarantee the peace and tranquility of the population. 2. The inauguration of the new Felipe Ángeles Airport on March 21 of this year. 3. The inauguration in July of the new refinery and that it is resolved during this month of January, the payment to Shell to stop importing gasoline and avoid the increase in the cost of fuels. 4. Advance in the construction of the Mayan Train. 5. The construction of risk channels in the Yaqui communities in Nayarit. 6. The construction of the Santa María dam in Sinaloa. 7. The construction of irrigation systems in the Santa María dam and in the Picacho dam. 8. The electrical reform to avoid increasing electricity rates and the delivery of subsidies to foreign companies. Similarly, it will seek to avoid the privatization of lithium. 9. The electoral reform to guarantee that the actions of the INE councilors are impartial and promote austerity within the electoral body. The President pointed out that Mexico is the country that spends the most on elections in the world. 10. The reform of the National Guard so that it is attached to the SEDENA and thus prevent corruption like the National Police.

SOURCE: https://www.youtube.com/channel/UCxEgOKuI-n-WOJaNcisHvSg

MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA In the last week, there have been more than 1,000 positive cases per day, so the traffic light changed to high-risk or orange light for the state government and medium-risk or yellow light for the Federal government. The government is in talks with merchants, transporters, and industries to continue with the recommendations given by the Health Secretary, such as the correct use of face masks, healthy distance, gel with 70% alcohol, and adequate ventilation in closed places. Also, the forum was reduced to 50%. Official reports confirm 5,834 active cases in the past 14 days. Baja California’s Health Secretary reported that the vaccination schedule has been extended, and the vaccination points in the State have been increased. It is important to mention the availability of the COVID-19 permit to the working people affiliated with the IMSS on its website. SONORA The State of Sonora is considered a medium-risk or yellow light with only 2 municipalities in high-risk or orange light. Official reports confirm 998 new cases in the last 24 hours. This week 65,520 vaccines from the Moderna brand were received, and today the online registration begins to apply the vaccination booster against COVID-19 to the entire educational community.

MEASURES TAKEN BY STATES IN MEXICO

COAHUILA This week, staff from the Ministry of Health will apply the booster vaccine against Covid-19 to the teachers of Coahuila. TAMAULIPAS The Secretary of Health of the State of Tamaulipas announced that the entity is now in Red color in the Epidemiological Traffic Light due to the maximum risk of positive infections to Covid-19, after several days of increase in positive cases to the virus. NUEVO LEON The Nuevo Leon Health Secretariat, in agreement with the state Health Safety Council, determined to reduce the capacity in establishments and commercial lines with closed and open spaces by 50 percent as of January 7.

MEASURES TAKEN BY STATES IN MEXICO

AGUASCALIENTES A total of 35,280 doses of the vaccine from the MODERNA pharmaceutical company are already in Aguascalientes and will be administered as a booster to personnel working in all areas of public and private educational institutions at all levels. Delegation of Development Programs pointed out that in the following days, they will be announcing the schedule and sites where the “Roadrunner Brigade” will be deployed to attend exclusively to education workers, so they asked to be attentive to the announcements that are issued on official sites and in the media.

GUANAJUATO The state of Guanajuato registered its most critical day in terms of infections, with a total of 1,212 confirmed positive cases of Covid in a period of only 24 hours, including the state Governor himself, Diego Sinhue Rodriguez Vallejo. This is the highest peak of infections since the beginning of 2022 since the accumulated cases of the weekend before the return to school reported 1,531 new cases and 17 deaths. Currently, Guanajuato has 6,938 active cases and 988 under investigation. With this figure, the state of Guanajuato surpassed the 209,000 confirmed cases since the beginning of the pandemic, as well as the 13,876 deaths. In view of this situation, just before announcing that he had contracted the virus, the Governor indicated that the traffic light would remain green until January 23.

MEASURES TAKEN BY STATES IN MEXICO

QUERETARO Six patients were found to be suspected of having the Omicron strain of Covid-19, informed the Secretary of Health of Queretaro, Martina Perez Rendon. According to the official, these cases are “highly suspicious that they are of the Omicron variant.” For this reason, she said, the samples of the tests performed on the patients were sent to the Institute of Epidemiological Diagnosis and Reference (INDRE) in Mexico City for the corresponding analysis and to confirm or rule out the cases. So far, he said, the patients are in the process of recovery. According to the latest epidemiological report from the health sector, Queretaro has an accumulated record of 101,208 positive cases of covid19 coronavirus, of which 114 infections were reported in the last 24 hours. In addition to 6,119 deaths, two of which occurred just the day before.

JALISCO Due to the increase of Covid-19 positive infections throughout the national territory, on Monday, January 10, 2022, the authorities of the state of Jalisco announced new restrictions and preventive measures intending to stop the chain of infections. The maximum measure is that it will be mandatory to present a vaccination certificate to enter public establishments such as nightclubs, casinos, stadiums, concerts, convention centers, event halls, and all types of events with crowds. Enrique Alfaro, Governor of Jalisco, recommended to people who still have not been vaccinated against Covid-19 that in order to enter this type of events and establishments, it will be mandatory to present a negative test with 48 hours of validity, and only PCR tests issued by the Cofepris will be valid. Likewise, the Governor detailed that the capacity allowed in sports stadiums will be reduced to 60 percent, and both measures will take effect as of January 14, 2022. Meanwhile, other general restrictions will be imposed until February 12: Saint festivities, Fairs, Kermeses, Carnivals, Pilgrimages.

MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO Businessmen of the entity affirmed that there is no economic recovery trend so far, as all the indicators refer to it. This situation keeps them very concerned and acting accordingly. Laura Gonzalez, President of the Business Coordinating Council (CCE) of the State of Mexico, estimated that after a very complicated year, “we believed that this could be the year of the beginning of the economic recovery, and this is not the case. The indicators show that we are still in a difficult moment, both for the national and state economy”.

CDMX Mexico City is very close to recovering pre-pandemic levels in terms of economic recovery, assured the Secretary of Economic Development (Sedeco), Fadlala Akabani Hneide. In a press conference, the official assured that there are signs, signals, and very clear variables that we are on the right track in the recovery of both formal and general employment and the opening of new businesses, which amounted to 16,750 last year. Another factor that guarantees a better dynamic for this year, he said, is the implementation of the national vaccination plan, where most of the population is already immunized.

ECONOMIC RECOVERY

ALEJANDRO MENDOZA President of Prodensa Services Corp.

OPPORTUNITIES IN THE CURRENT ECONOMIC UPTURN Indicators show a clear trend of economic recovery and growth in the United States of America, and although we are still under a persistent health threat, it is the combination of a few factors that result in economic growth. Today I want to share with you my views on one factor in particular: Adaptability. Historically, human beings have developed the ability to adapt to their environment, but it is usually a slow process, that is, the change happens from generation to generation or takes years to achieve a change in habits and customs as in its time was the use of the Internet. During the last two years the whole world had to move quickly in the face of the unknown and certainly feared, the COVID. This forced many companies, businesses, people and institutions to take radical measures in search of a common good in health although at a high

ECONOMIC RECOVERY

cost because the economy stopped and for some it was the end; fortunately it was not for everyone and those of us who are still standing have developed by necessity an adaptability to live in this environment leaving aside the status quo, the “right”, the “should be” to join in a reality in which time does not wait and demands speed, flexibility, confidence and resilience. The parameters have changed, today more than ever it is valid to “think outside the box”, from the Chef who no longer wants to work in that exhausting schedule and chooses another less demanding job, probably with lower pay, but with the certainty of being able to get home and be Chef for the most demanding diners: his family; to the artist who in the absence of works or concerts found in online education a way of life and multiply talents with his art. These examples are an image of what we live today and the question for us must be forced: Will continuing to do the same thing give us more opportunities? I think many of us agree that the answer would be NO. Undeniably we learned to cut distances and be “present”, this gives us the opportunity to be part of global, multidisciplinary work teams, where people are committed to achieve a common goal, but it is no longer relevant the physical place where each team member is located, and it is right there where there is a great opportunity for all of us. The combination of those looking for a change of pace and those waiting for an opportunity has combined as a result of this adaptability. Being a design engineer, a product manager or a sourcing leader for a foreign company no longer requires you to have a certain nationality or look to be an expatriate, in many cases you don’t even have to leave your home, yes, your home, wherever you decide that is. Now let’s imagine for a moment, only in the United States there are more than 63 million positions like these today, if only 5 percent of those positions were executed by Mexicans that would give us as a universe more than 3 million opportunities so that together with technology, flexibility, confidence and added value we have in front of us a bright future and in perfect alignment with our values, always looking for all involved to have better alternatives to grow.

TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON JANUARY 10, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 11,052

SOURCE: https://www.gob.mx/salud/

CONFIRMED CASES: 4,136,440

NEW DEATHS REPORTED: 162

CONFIRMED DEATHS: 300,412

INCREASE OF CONFIRMED CASES SINCE THE FIRST REPORT MAP WITH THE DISTRIBUTION OF THE INCIDENCE RATE OF ACCUMULATED CASES OF COVID-19 BY ENTITY OF RESIDENCE.

National rate 120.96

0 to 10.0 (1 states)

40.1 to 50 (0 states)

10.1 to 20 (2 states)

50.1 to 60 (2 states)

20.1 to 30 (1 states)

60.1 to 70 (2 states)

30.1 to 40 (3 states)

>70 (21 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of January 10, 2022, globally there have been reported 305,914,601 confirmed cases (1,736,233 new cases) of COVID-19 and 5,486,304 deaths (4,029 new deaths*). Lethal rate: 1.8%. In the last 14 days, 25,882,281 cases were reported globally.

SOURCE: https://www.gob.mx/salud/

TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF JANUARY 12

DEATH INCIDENTS IN POPULATION BY REGION AS OF JANUARY 12

SOURCE: https://www.gob.mx/salud/

EHS

UPDATES AND SHORTENS RECOMMENDED ISOLATION AND QUARANTINE PERIOD FOR GENERAL POPULATION

Given what we currently know about COVID-19 and the Omicron variant, the Center for Disease Control and Prevention of United States (CDC) is shortening the recommended time for isolation for the public. People with COVID-19 should isolate for 5 days and if they are asymptomatic or their symptoms are resolving (without fever for 24 hours), follow that by 5 days of wearing a mask when around others to minimize the risk of infecting people they encounter. The change is motivated by science demonstrating that the majority of SARS-CoV-2 transmission occurs early in the course of illness, generally in the 1-2 days before the onset of symptoms and the 2-3 days after. Additionally, CDC is updating the recommended quarantine period for anyone in the general public who is exposed to COVID-19. For unvaccinated people or more than six months out from their second mRNA dose (or more than 2 months after the J&J vaccine) and not yet boosted, CDC now recommends quarantine for 5 days followed by strict guidelines mask to use for an additional 5 days. Alternatively, if a 5-day quarantine is not feasible, an exposed person must wear a well-fitting mask at all times when around others for 10 days after exposure. Individuals who have received their booster shot do not need to quarantine following an exposure but should wear a mask for 10 days after the exposure. For all those exposed, best practice would also include a test for SARS-CoV-2 at day 5 after exposure. If symptoms occur, individuals should immediately quarantine until a negative test confirms symptoms are not attributable to COVID-19. Isolation relates to behavior after a confirmed infection. Isolation for 5 days followed by wearing a well-fitting mask will minimize the risk of spreading the virus to others. Quarantine refers to the time following exposure to the virus or close contact with someone known to have COVID-19. Both updates come as the Omicron variant continues to spread throughout the country and reflects the current science on when and for how long a person is maximally infectious. These recommendations do not supersede federal, state, local laws, rules, and regulations, nor do they apply to healthcare workers for whom the government has specific protocols. If you are required to wear a face mask in closed or open spaces according to federal, state, or local regulations, it is imperative to follow the rules. The following is attributable to CDC Director, Dr. Rochelle Walensky: “The Omicron variant is spreading quickly and has the potential to impact all facets of our society. CDC’s updated recommendations for isolation and quarantine balance what we know about the spread of the virus and the protection provided by vaccination and booster doses. These updates ensure people can safely continue their daily lives. Prevention is our best option: get vaccinated, get boosted, wear a mask in public indoor settings in areas of substantial and high community transmission, and take a test before you gather.”

SOURCE: Centers for Disease Control and Prevention

DAVID ANTUNEZ Environmental, Health, and Safety Director.

RECRUITING & HIRING

TALENT ATTRACTION

The demand for talent in companies continues to grow in an environment where the Covid restrictions still prevail. Given this, we can anticipate that 2022 will be as challenging and complicated for some companies to attract talent as it was in 2021. For many organizations, 2021 came with greater difficulty in recruiting candidates compared to previous years, in part because the market was fully reactivated, but under an environment of restrictions that still did not allow massive events to attract talent, or job fairs, difficulty to obtain municipal permits, among other challenges. 2021 also represented a challenge as the number of candidates grew, especially for administrative positions, who preferred job postings that offered home office schemes over those who didn’t. Companies are already offering positions for on-site activities, but many candidates still choose to participate in processes only in companies that allow remote work. Our Prodensa talent attraction experts have learned to identify the aspects that help companies to attract and retain talent more easily, from competitive salaries, flexible work schedules, hiring bonuses, among other aspects. To learn more about how we can support you or have a conversation with the Prodensa talent attraction team, contact us for more information.

GABRIELA VELARDE Operations Director Prodensa HR

LABOR

ALVARO GARCIA HR, Vice President

NEW UMA VALUE FOR 2022 Every January, the value of the UMA* is published and will be valid for one year. The new value of the UMA for 2022 has just been announced. The variation of the new value concerning 2021 is greater than 7 percent. (It is the highest increase since the creation of the UMA in 2016) The UMA was created to replace the minimum wage as an economic reference for multiple calculations non-related to wages or salaries, including legal payment obligations and sanctions. Today several benefits use the UMA as the unit for setting caps, insurance coverages, deductibles, etc. It is time for employers to review and adjust payroll and social security calculations that use UMA. The 2022 value will be valid starting February 1st. *UMA: Unit of Measure and Update (English for Unidad de Medida y Actualizacion)