Weekly Report 68

GENERAL SITUATION IN MEXICO

Weekly Review # 68 I August 18, 2021

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MANUFACTURING INDUSTRY THE INDUSTRY HAS THREE MONTHS OF DECLINES DUE TO A GLOBAL SHORTAGE OF SUPPLIES Industrial activity in Mexico closed the second quarter of the year with yellow lights, amid the effects of Covid-19 on global supply chains and the threat of a new wave of contagions, in light of data published yesterday by the National Institute of Geography and Statistics (Inegi).

During June, the indicator that measures activity decreased 0.5% compared to May, making it three months of decline. This sixth month of the year was the first in which the four pillars of industry: mining, public services (electricity, gas, and water), construction, and manufacturing, registered simultaneous declines since April of last year when non-essential economic activities were suspended to halt the advance of the disease.

The construction sector led the declines, with a 2%

decrease, after having advanced 1.5% in May. It was followed by mining (-0.8% vs. +0.7% in May), utilities (-0.5% vs. +1.1% in May) and manufacturing (-0.1% vs.

-0.7% in the previous month).

As with industry in general, manufacturing has had three months of declines and five months of setbacks so far this year, as it only registered growth last March.

The automotive industry has been the main industry affected by the disruptions in global value chains, the main expression of which has been the shortage of components such as semiconductors after the consumer electronics industry monopolized the demand for these inputs for the production of telephones, tablets, and computers.

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MANUFACTURING INDUSTRY

2.5 MILLION OUTSOURCED WORKERS HAVE MIGRATED SINCE NOVEMBER: IMSS In November 2020, the migration of outsourced workers began, and by August 2021, 2.5 million workers were already hired directly by their employer, which also reflected a 12% increase in their salaries.

totaled 4.17 million, that is, 83%. As of August 1, 59% are still working with a real employer, not under a subcontracting scheme, while 41% are working with a subcontracting company.

This is revealed in the first reports of the Mexican Social Security Institute (IMSS) on the “Short-term results of the subcontracting reform” and indicates that it does not have a tax collection purpose. “However, the workers who were migrated from a subcontracting company to a real company registered a 12 percent salary increase”.

In the follow-up carried out by the IMSS, since November, when the change in the employer relationship was announced, a universe of 5 million 20,000 workers was identified. As of August 1, 17% were terminated, losing their source of employment.

The IMSS information details that 80% of those who are still in outsourcing are with the same company, while the rest are with a company other than the one they were originally hired by but are still in an outsourcing scheme.

Thus, subcontracted workers who kept their jobs

Among the important data highlighted by the IMSS is that 50% of the 2.5 million workers who migrated from one employer to another received an increase of 10% or more, while 27% saw a salary increase of 10%. Still, in contrast, 23% suffered, in their direct hiring, a decrease in their salaries.

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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference August 11-16, 2021 BILATERAL RELATION President Andres Manuel Lopez Obrador mentioned that there is a good relationship with President Joe Biden, which is why conversations are being held for a state visit to take place in September.

He said that the meeting he had yesterday with Jake Sullivan, adviser to President Joe Biden on National Security Affairs, and Juan Gonzalez, was very beneficial for both countries since they spoke of a comprehensive program for the economic growth of North America, support for Central American countries, migration, security, and trade with Asia.

CHANGES IN ACADEMIC PLANS The President pointed out that the contents should be changed on the academic plans, which are part of neoliberal politics, where individualism is the axis.

He pointed out that it should be committed to values​​ such as fraternity and equality to moralize the country’s public life.

RETURN TO CLASSES President Lopez Obrador noted that schools will open later this month. He commented that they are working on cleaning the schools, rehabilitating them, and preparing to return to the classrooms. He insisted that health protocols for children will be strengthened. Also, mentioned that this decision to return

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

to face-to-face classes is supported by the National Union of Education Workers (SNTE).

PROBLEMS WITH SAT APPOINTMENTS The President was questioned regarding the complication and delay in assigning appointments for taxpayers in the SAT and if this was due to lack of personnel or some technological challenge. The President replied that he does not know the issue but that the head of the SAT will be present in the morning to answer next week.

NUEVO LEON VACCINATION PROGRAM When asked for his opinion regarding the vaccination of Nuevo Leon workers in Texas, announced yesterday by the Governor-Elect, Samuel García, the President commented that those who have resources and can go to vaccinate can do so on this issue. Everything that means helping to face the pandemic and vaccinating everyone should not be an obstacle. He concluded by saying that all these initiatives are welcomed.

LAW REFORMS The President commented that he will present an initiative to reform the Judiciary law and the INE, noting that a “sharp renewal” will be carried out. He commented that the Electoral Tribunal of the Judiciary has acted in favor of certain parties.

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MEASURES TAKEN

BY STATES IN MEXICO

BAJA CALIFORNIA The State of Baja California remains considered as medium-risk or yellow light. Official reports confirmed that are currently 993 active cases with hospital occupancy at 47.59%. The vaccine plan continues this week, applying the complete vaccination scheme to the adult population in Tijuana, Ensenada, and Mexicali. The percentage of the population with a complete vaccination scheme increased to 78.28% in the past week. Baja California’s Health Secretary, mentioned that there are currently 17,816 vaccines available for the second dose of Pfizer, Astra Zeneca, and Sinovac.

SONORA Covid-19 cases continued on the rise in the past weeks. The vast majority of Sonora’s municipalities changed to high-risk tier or orange light, three municipalities in the maximum-risk tier or red light, four municipalities in the medium-risk tier or yellow light, and only one out of 72 in the low-risk tier or green light. Official reports confirmed that are currently 2,389 active Covid-19 cases and 369 hospitalized patients. 499 new confirmed cases were reported in the past 24 hours. The COVID-19 vaccination campaign continues, applying the second dose of the Pfizer vaccine for adults between 18 and 35 years of age.

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MEASURES TAKEN

BY STATES IN MEXICO

COAHUILA It is expected that the peak of the third wave that has affected Coahuila is due to the return of vacationers in the summer period. A decrease may be felt in the coming days with the end of this period.

TAMAULIPAS In Tamaulipas, since Monday, the new measures for COVID-19 were applied, given the increase in cases in the entity. Among the most controversial measures are the cancellation of events and concerts and the sale of alcohol will not be allowed on weekends.

NUEVO LEON The governor-elect of Nuevo Leon, Samuel Garcia, negotiated with the government of Texas the vaccination of workers from Nuevo Leon on the border. Up to a thousand workers will go every day to Laredo, Texas, to be vaccinated against Covid-19 as part of the cross-border vaccination program, which contemplates 25 thousand applications of a single dose in the first stage.

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MEASURES TAKEN

BY STATES IN MEXICO

QUERETARO As of August 16, positive cases in the age groups 0 to 9, 10 to 19, and 20 to 29 increased at least five times compared to the same period in July. According to Rafael Lopez Gonzalez, whoever falls ill with COVID-19 in this new wave might not be able to find a hospital space to be treated due to the high demand registered.

The spokesperson reminded that our ability to organize ourselves is the key to advance or retreat and detailed that the new scenario “is a call to raise your state of alert in the presence of the virus.”

AGUASCALIENTES As of August 15, 2021, 144 new cases are reported in the state of Aguascalientes.

In addition, the rate of active cases in the last 14 days is 65 per 100,000 inhabitants, which shows a high incidence at the state level. To contextualize, on the same date, there are 23,642 new cases at a national level and a rate of 124.37 infections per 100,000 people.

This gives us a hospital occupancy rate of 34% at the local level. However, some hospitals are saturated or close to reaching their limit, especially in the capital city. Below we break down the data by type of care.

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MEASURES TAKEN

BY STATES IN MEXICO

GUANAJUATO With data until August 16, in the last six days, the number of Covid-19 infections in the state of Guanajuato soared, with 3,88 people testing positive and 65 deaths.

Leon is the municipality with the highest number of infections in the so-called third wave, with 980 accumulated cases of the total number of cases registered in the state between August 10 and 15.

Every day an average of more than 500 positive cases are registered in the state, with more impact in Leon, Irapuato, and Celaya. The city of Leon also reported 21 deaths in less than a week, exceeding 30 percent of those registered (65) in that period.

JALISCO With data until August 16, The Ministry of Health of Jalisco registered 1,732 new coronavirus infections, bringing the total number of confirmed cases to 307,662 throughout the state and reporting 19 deaths, bringing the total number of deaths in the state to 13,643. Adding the negative results reported by all laboratories, 1,082,435 cases have been ruled out in Jalisco to date, and 22,606 cases are suspected.

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MEASURES TAKEN

BY STATES IN MEXICO

STATE OF MEXICO The Secretary of Health of the State of Mexico informed that during the last 24 hours, the entity added 125 new confirmed cases, as well as 18 unfortunate deaths attributable to covid-19, for which it reiterated the importance of taking extreme preventive measures, as the risk of contagion is still high. The epidemiological traffic light will continue in orange.

CDMX Mexico City will be in orange color in the epidemiological traffic light from August 16 to 22, as reported by the head of government, Claudia Sheinbaum. She mentioned that citizens should continue to comply with the relevant health measures.

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VACCINATION PROGRESS

As of August 16, 77,573,466 doses have been applied in all Mexico since December 24, of which 29,402,096 have the complete scheme.

The states with the highest percentages of the vaccinated population are Mexico City, with 91 percent, Quintana Roo, 86 percent, Sinaloa, 82 percent, and Baja California, 80 percent.

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TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON AUGUST 16, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 7, 172

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

CONFIRMED CASES: 3,108,438

NEW DEATHS REPORTED: 272

CONFIRMED DEATHS: 248,652

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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 103.79

0 to 10.0 (0 states)

40.1 to 50 (1 states)

10.1 to 20 (1 states)

50.1 to 60 (3 states)

20.1 to 30 (2 states)

60.1 to 70 (6 states)

30.1 to 40 (0 states)

>70 (19 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of August 16, 2021, globally there have been reported confirmed 207,173,086 cases (460,516 new cases) of COVID-19 and 4,361,996 deaths (8,565 new deaths*). Lethal rate: 2.1%.

• In the last 14 days, the number of new cases accounts for 4% (8,766,942) 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 AUGUST 1

DEATH INCIDENTS IN POPULATION

BY REGION AS OF AUGUST 1

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

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EHS

RECOMMENDATIONS DELTA VARIANT: INFECTIONS AND SPREAD

The Delta variant causes more infections and spreads faster than early forms of SARS-CoV-2.

• The Delta variant is more contagious: The Delta variant is highly contagious, nearly twice as contagious as previous variants.

• Some data suggest the Delta variant might cause more severe illness than previous strains in unvaccinated persons.

In two different studies from Canada and Scotland, patients infected with the Delta variant were more likely to be hospitalized than patients infected with Alpha or the original virus strains.

• Unvaccinated people remain the greatest concern: Although breakthrough infections happen much less often than infections in unvaccinated people, individuals infected with the Delta variant, including fully vaccinated people with symptomatic breakthrough infections, can transmit it to others. The government is continuing to assess data on whether fully vaccinated people with asymptomatic breakthrough infections can transmit. However, the greatest risk of transmission is among unvaccinated people who are much more likely to contract and therefore transmit the virus.

• Fully vaccinated people with Delta variant breakthrough infections can spread the virus to others. However, vaccinated people appear to be infectious for a shorter period: Previous variants typically produced less virus in the body of infected fully vaccinated people (breakthrough infections) than in unvaccinated people. In contrast, the Delta variant seems to produce the same high amount of virus in unvaccinated and fully vaccinated people. However, like other variants, the amount of virus produced by Delta breakthrough infections in fully vaccinated people also goes down faster than infections in unvaccinated people. This means fully vaccinated people are likely infectious for less time than unvaccinated people.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

CULTURALLY INCLUSIVE COMMUNICATION

PUBLIC AFFAIRS

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Organizations must provide a safe space to an individual to guarantee respect, tolerance, and satisfaction to the team.

This can be granted by implementing one tool: Culturally inclusive communication. We can build a culture of inclusion, allowing everyone to feel they belong regardless of their background, beliefs, preferences, and differences.

YOELLE ROJAS Public Affairs & Communications Director

What does culturally inclusive communication means?

It means being flexible, observing how your team reacts, hearing what your people say and need, and making adjustments. Create spaces where people feel they belong.

Here are some essential key points to create inclusive environments: 1. Reflect: Your communication must reflect your willingness to be supportive.

2. Support Differences.

3. Promote participation.

4. Encourage collaboration.

5. Design your workspace for inclusivity.

6. Listen to your team.

Always take into consideration that culturally inclusive communication will keep evolving as the needs of our team.

Be open and flexible to change. We are here to support you through this evolution.

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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