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Weekly Report 59

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GENERAL SITUATION IN MEXICO

Weekly Review # 59 I June 16, 2021


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MANUFACTURING INDUSTRY THE NATIONAL UNION REGISTRY FOR COLLECTIVE UNION AGREEMENTS WILL START OPERATIONS IN OCTOBER In October, the National Union Registry will start operations, which will compile information on collective union agreements, union records, by-laws, and financial reports of all state and federal union organizations in the country. The operations will be in charge of the Federal Center for Labor Conciliation and Registration (CFCRL), informed its general director, Alfredo Dominguez Marrufo. On behalf of the head of the STPS, Esteban Martinez emphasized that the Labor Reform constitutes a profound transformation of the world of work, necessary in this modern and globalized world, which brought about a radical change in laws and institutions, but, fundamentally, in mentality and culture. Among these processes of participation is the legitimization of collective union agreements. Nationally, 831 unions have legitimized 1,295 contracts through the consultation of more than 350,000 workers. Especially in Jalisco, 38 unions have legitimized 70 contracts, and 24,153 workers have been consulted. Therefore, intending to implement the labor reform in that state, he urged union leaders to carry out this procedure, which will also serve to comply with the constitutional reform and the free trade agreement with the United States and Canada.


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MANUFACTURING INDUSTRY

U.S. FILES SECOND LABOR COMPLAINT AGAINST FACTORY ESTABLISHED IN MEXICO The United States has asked the Mexican government to review the case of alleged violations of freedom of association at a factory owned by auto parts manufacturer Tridonex.

Last May 12, it filed the first complaint about alleged violations of freedom of association in legitimizing the collective union agreement at the General Motors plant in Silao, Guanajuato.

Last May, the AFL-CIO and other groups filed the first request for a rapid response labor case against Tridonex under the U.S.-Mexico-Canada Agreement (USMCA).

In a press release, the U.S. Trade Representative, Katherine Tai, and the U.S. Secretary of Labor, Marty Walsh, announced on Wednesday that the U.S. requested Mexico to review whether workers at the Tridonex plant in Matamoros, Tamaulipas, are being denied the rights of free association and collective negotiation.

For the second time in a month, the United States has taken action under the USMCA Rapid Response Mechanism.


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GOOD NEWS

MEXICO AIMS TO EASE BORDER RESTRICTIONS AS VACCINATIONS ADVANCE Mexico aims to gradually lift pandemic-induced restrictions on its shared border with the United States as it progresses in vaccinating the local population against COVID-19, Mexican Foreign Minister Marcelo Ebrard said on Tuesday. Ebrard was speaking at a regular news conference ahead of meetings with U.S. Homeland Security chief Alejandro Mayorkas in which the reopening of the border is due to be discussed. Earlier on Tuesday, Mexico received a consignment of some 1.35 million doses of Johnson & Johnson vaccines from the United States that will go towards inoculating Mexican border residents aged 18 and above, the government said. The goal is to ensure Mexico’s frontier cities have the same level of protection against COVID-19 as U.S. cities, so there is no longer an argument to uphold restrictions, Ebrard said.

SOURCE: Reuters


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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference June 9-15, 2021

COVID-19 Hugo Lopez-Gatell, Undersecretary of Prevention and Health, warned of a rebound in COVID-19 cases in six states and reported that Mexico is celebrating 21 weeks with the stability of the coronavirus pandemic. The official explained that of the six entities, “in two, it is a very substantial increase,” and they are Quintana Roo and Yucatan, while the other entities are Baja California Sur, Campeche, Sinaloa, and Veracruz. VISIT KAMALA HARRIS Secretary Marcelo Ebrard mentioned that the visit arises from an approach made by AMLO to promote development so that people do not have to migrate. He reported that at the bilateral meeting, the President communicated to the vice president the need to open the border, for which the Government of Mexico will reinforce vaccination in border cities for those over 18 years of age, to which the US official replied that it will form a working group for the gradual reopening. The President described the meeting as successful for strengthening the relationship between Mexico and the US. He declared that issues such as compliance with the USMCA and migration were discussed. ECONOMIC SITUATION He highlighted that the results have been positive, given that an increase in tax collection is being observed, an appreciation of 3% of the peso, stability in inflation,

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

and even a positive balance in the Mexican Stock Exchange. The President reiterated that there will be no increase in taxes or increase in the price of energy. ENERGETIC REFORM Although he does not have a qualified majority at the Federal Congress, the President emphasized that he will be presenting initiatives for constitutional reforms. In that sense, he pointed out that the problem of the lack of support for the Federal Electricity Commission must be resolved and that the price of electricity does not increase, for which a change in the constitution is required. ELECTIONS The President highlighted that there were no problems in the corresponding computations, which shows that they were fair and free elections, not state elections as was held in the past. COVID-19 VACCINES The Undersecretary of Health, Hugo Lopez-Gatell, announced that the application of the coronavirus vaccine in the municipalities of the northern border will begin on June 16 in Baja California, with the doses developed by the pharmaceutical company Johnson & Johnson and donated by the government of United States to Mexico. In the National Palace, the official recalled that it is planned to apply the dose in 39 municipalities of six border states.


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MEASURES TAKEN BY STATES IN MEXICO

BAJA CALIFORNIA The State of Baja California is considered in the low-risk tier or green light, except for the municipality of Mexicali, which is considered in the medium risk or yellow light. Baja California’s Health Secretary reported 279 active cases, with a small decrease from last week. Hospital occupancy at 21.97%, with 308 hospital beds available as well as 247 respirators available for COVID-19 patients. The vaccination plan continues, and it’s reported that 733,401 people have been successfully vaccinated in the State, including adults over 60 years old, between 40 and 60 years old, and pregnant women. In this week, second doses for adults over 50 years old start in the State’s coastal area, and the vaccination plan continues for adults over 40 years old. Also, it is expected to receive the Johnson & Johnson vaccine this week, which will be applied to people between 18 and 39 years old. The vaccination would start the day after their arrival.

SONORA The State of Sonora remains with the vast majority of its municipalities in the medium risk tier or yellow light, and only six municipalities out of 72 in the low-risk tier, including San Luis Rio Colorado, Puerto Peñasco, Agua Prieta, Cananea, Huatabampo, and Empalme. The Sonora’s Health Secretary informed 1,297 active COVID-19 cases and 99 hospitalized patients, of which only 24 patients are in critical conditions using respirators. Four patients lost its life in the past 24 hours, and 147 new confirmed cases were reported. The application of the second doses of AstraZeneca against COVID-19 in adults over 60 years old continues in different municipalities.


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MEASURES TAKEN BY STATES IN MEXICO

COAHUILA With the support of the Ministry of National Defense (SEDENA), the Ministry of Health of Coahuila (SS) received 160,290 doses against Pfizer brand Covid on Friday, June 11, which will be applied to adults between 40 and 49 years old in Saltillo and Torreon as of June 14. TAMAULIPAS Of the 1.35 million Johnson & Johnson vaccines provided by the US Government, Tamaulipas will obtain a part of the benefit for its border area, so they plan to launch the application date in the next few days. These doses have been intended for people between 18 and 40 years old. This vaccine consists of a single dose and was approved by Cofepris, which means it is safe for the population.

NUEVO LEON Nuevo Leon companies are making a difference at the country level by joining the COVID-19 vaccination process since they will be using their facilities to enable macro-centers where vaccines can be applied in the entity. Heineken was the first company to get the green light to operate its vaccination center. Heineken was the first company to get the authorization to operate its vaccination center. However, the information provided by a local newspaper reveals that there are other companies awaiting approval to enable their center in the following weeks.


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MEASURES TAKEN BY STATES IN MEXICO

JALISCO Under the Jalisco Vaccination Model, which provides an appointment with a date and time for people to receive the vaccine against COVID-19, this Monday, June 14, an average of 737 Jalisco citizens were immunized per hour in the four macro modules set up for this purpose, said the State Health Secretariat. In the Benito Juarez Auditorium alone, said the agency, 12,520 senior citizens of Zapopan completed their vaccination schedule by receiving the second dose against the coronavirus within 12 weeks of the first vaccine (limit set by AstraZeneca’s Clinical Guide). Another 5,220 doses were applied at the Plaza Bicentenario and 4,320 more at the Drive Thru of the Centro Universitario de Ciencias Economico Administrativas (CUCEA) of the University of Guadalajara, while at the Centro Universitario de Ciencias Exactas e Ingenierias (CUCEI), 7,439 doses were applied to the 50-59 age group and pregnant women. In total, said the state agency, 29,499 vaccines were applied in Guadalajara and Zapopan, of which 22,060 were second doses for senior citizens in Zapopan and 7,439 for people between 50 and 59 years of age and pregnant women in both municipalities. The vaccination will continue this week, which will complete the regular vaccination days for people over 60 years of age in the 125 municipalities of the State.

GUANAJUATO In Guanajuato, one million 721 thousand 335 people have been vaccinated against COVID-19. Only 10 percent of the population has a complete scheme, so it is important to maintain preventive measures in the State, warned the Minister of Health, Daniel Diaz Martinez. The official emphasized that infections have remained low in the State. However, he informed that there are still serious cases and deaths due to the virus and added that a rebound in the State is not discarded. Before increasing the number of hours in schools from 3 to 5 hours in the State, the Minister said that this is because there are fewer confirmed coronavirus cases. There has not been a rebound in the increase in mobility in the municipalities. It will probably not be until the next school year that classes will be returned completely, as long as the epidemiological outlook in the State of Guanajuato allows it. Diaz Martinez emphasized not lowering our guard and using masks, washing hands, applying the antibacterial gel, and respecting the healthy distance because only a third of the population is vaccinated against COVID-19.


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MEASURES TAKEN BY STATES IN MEXICO

QUERETARO Ten municipalities in the State have no active cases of COVID-19. At the same time, only the metropolitan area of Queretaro, San Juan del Rio, Jalpan de Serra, and Cadereyta concentrate the transmission of the virus. As of Saturday June 12, the municipalities of Arroyo Seco, Pinal de Amoles, Landa de Matamoros, San Joaquin, Ezequiel Montes, Tequisquiapan, Toliman, Peñamiller, Ezequiel Montes, Pedro Escobedo and Huimilpan had no active cases. In Queretaro, progress is being made in the third phase of the National Vaccination Plan against COVID-19, which is focused on immunizing people between 50 and 59 years of age. During the State Vaccination Council (COEVA) session, specialists reported on the progress of the National Vaccination Plan for this population group and the application of second doses to complete the immunological picture.

AGUASCALIENTES With the downward trend of new infections and hospitalized patients in Aguascalientes, the process of reconverting the Covid areas of the hospitals to other medical specialties has begun, informed the Minister of State Health, Miguel Angel Piza Jimenez, who mentioned that during June, 15% of the hospital areas are expected to be reconverted. By the end of the year, the projection is that 70% of the hospitals will be available for the attention of other medical specialties such as traumatology and oncology, among others, which were suspended for several months due to the attention required by the COVID-19 pandemic. The remaining 30% will continue to provide care for severe and very severe COVID-19 patients because although progress has been made with the vaccination strategy, new outbreaks could occur in the months of the winter season. The State’s Ministry of Health informed that personnel is being hired for seasonal vaccination campaigns to intensify the immunization of the population.


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MEASURES TAKEN BY STATES IN MEXICO

STATE OF MEXICO Continues to be also on the green light of the epidemiological traffic light. Also, as in Mexico City, it is expected that the State of Mexico could change to a yellow or even orange color next week as increases in cases have been registered.

CDMX Mexico continues to be on the green light of the epidemiological traffic light. Faceto-face classes continued this week at some schools, despite some had to close because of cases detected. More activities with more occupancy are allowed. Some experts had mentioned that the reopening was too fast and the vaccination process is too slow. It is expected that Mexico City could change to yellow or even orange color next week as increases in cases have been registered.


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VACCINATION PROGRESS

As of June 12, 36,983,641 doses of vaccine have been applied in Mexico since December 24, of which 14,911,487 have the complete scheme. A total of 45,106,665 doses had been received. The vaccines applied in Mexico are Pfizer BioNtech, AstraZeneca, SinoVac, Sputnik V, and Cansino. On June 15, Mexico received 1,640,160 doses of Johnson & Johnson and Pfizer vaccines. These will be administered throughout the border states, according to health authorities.


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TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON JUNE 14, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 1,175

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

CONFIRMED CASES: 2,455,351

NEW DEATHS REPORTED: 37

CONFIRMED DEATHS: 230,185


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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 1903.78

0 to 500 (1 states) 501 to 1,000 (2 states) 1,001 to 1,500 (12 states) 1,5001 to 2,000 (8 states) >2,000 (9 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of June 14, 2021, globally there have been reported confirmed 175,686,814 cases (353,660 new cases) of COVID-19 and 3,803,592 deaths (10,362 new deaths*). Lethal rate: 2.2%. • In the last 14 days, the number of new cases accounts for 3% (5,476,708) of the total of accumulated cases.

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


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TOWARDS THE “NEW NORMAL” INCIDENTS OF CONTAGIONS IN THE POPULATION BY REGION AS OF JUNE 14

DEATH INCIDENTS IN POPULATION BY REGION AS OF JUNE 14

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


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EHS

RECOMMENDATIONS POST-VACCINATION CONSIDERATIONS FOR WORKPLACES

After the COVID-19 vaccination, employees might have some side effects. It is normal for these to occur. Common side effects include pain, redness, and swelling in the arm where they received the vaccination, as well as fever, chills, tiredness, headache, nausea, and muscle pain. Clinical trials found that most signs and symptoms: • Are mild to moderate in severity • Occur within the first 3 days of vaccination (the day of vaccination and the following 2 days, with most occurring the day after vaccination) • Get better within 1–2 days • Are more frequent and severe following the second dose of an mRNA vaccine and among younger people compared to those who are older (>55 years) Cough, shortness of breath, runny nose, sore throat, or loss of taste or smell are not consistent with post-vaccination symptoms and instead could be symptoms of COVID-19 or another infection. Find a summary of more information on post-vaccination symptoms for Pfizer-BioNTech, Moderna, and Johnson & Johnson’s Janssen COVID-19 vaccines. It might be challenging to tell the difference between some postvaccination signs and symptoms from signs and symptoms of COVID-19 or other infectious diseases. Employees with signs and symptoms in the first 1–3 days after vaccination could be mistakenly considered infectious; this could unnecessarily restrict them from work. This might have negative consequences for employees, customers, and workplaces. Strategies are needed to effectively manage post-vaccination signs and symptoms and limit unnecessary work restrictions. While experts learn more about the protection that COVID-19 vaccines provide under real-life conditions, it’s important to continue using all the tools available to control this pandemic. Employers should continue to follow the Guidance or Protocol for Businesses and Employers Responding to COVID-19.

DAVID ANTUNEZ Environmental, Health, and Safety Director.


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PUBLIC AFFAIRS

RECOMMENDATIONS IS THERE ENOUGH TRUST WITHIN YOUR TEAM? TRANSPARENCY IN COMMUNICATION

After more than a year of pandemics and home office, people are returning to their workplaces; it is time to create new ways of communication, considering that some people will maintain a hybrid work style. Help your teams regain confidence with transparent communication to achieve an excellent returning experience. The characteristics of transparent communication are: • It provides the information needed to understand what is happening at the time. Developing trust and loyalty. • It avoids surprises. • It provides follow-up on concerns that are raised. • Strengthen relationships. • Avoids expectations. • Set clear goals and objectives. • Creates engagement from your people. Many companies continue to underestimate the importance of trust and fail to build and nurture it properly within their organization. What magic link attracts potential new hires and retains current employees, keeping them motivated and loyal? In Prodensa, we can help you develop effective communication strategies to strengthen the trust between you and your teams.

YOELLE ROJAS Public Affairs & Communications Director


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LABOR

RECOMMENDATIONS PREVENTIVE MEASURES IN ORGANIZATIONS The vaccination progress has begun to show a relaxation on governments concerning prevention measures against COVID. The U.S has issued new protocols, countries in Europe opened borders to vaccinated Mexican travelers. Are we facing a relaxation also in companies? The answer is no. This new phase should not mean a relaxation but a strengthening of measures in the workplace to ensure business continuity.

ALVARO GARCIA

While relaxation is already imminent in public and social environments, this is not the case in companies. The basic preventive measures (use of masks, social distancing, frequent cleaning of hands) will be extended over time in the organizations.

HR, Vice President

BASIC PROTECTIVE MEASURES AGAINST COVID-19

1 2 3 4 5 Wash your hands frequently with soap and water for 20 seconds.

When coughing or sneezing, cover your nose and mouth with a disposable tissue or use the inside corner of your arm.

Avoid shaking hands and kissing.

Keep your workspace clean and don't share personal items and utensils.

If you show symptoms of a cold or flu, go to a doctor. Do not self-medicate and inform your supervisor and Human Resources department.


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