Weekly Report 69

GENERAL SITUATION IN MEXICO

Weekly Review # 69 I August 25, 2021

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MANUFACTURING INDUSTRY GENERAL MOTORS: WHY IS THIS UNION VOTE IN MEXICO RELEVANT?

A majority of General Motors (GM) workers in Guanajuato voted against the Workers Confederation of Mexico (CTM), the country’s largest labor federation, and thereby won their freedom of association.

The result of the vote on whether or not to maintain the collective union agreement stems from a complaint from the United States and is part of a process presented in the framework of the labor section of the renewed trade agreement between that country, Mexico and Canada (USMCA).

On May 12, the United States sent a request for review to Mexico for irregularities detected in the collective union agreement vote and “the denial” of free association and collective union rights.

Respect for the rights of association, collective union, and better wages in Mexico has been one of the main demands of North American unions for the signing of the USMCA. For this reason, the U.S. government has urged the implementation of the Mexican labor reform, approved in 2019, which seeks to guarantee freedom of association and union democracy in Mexico, which has a history of unions with leaders accused of corruption.

On the other hand, the Mexican government has bet on the renewed trade agreement to recover after the historic 8.2 percent GDP contraction it suffered in 2020 due to the COVID-19 crisis. “(This process) will contribute to the development of future union democracy processes in the country, being a bank of good practices that unions can take up in accordance with the 2019 Labor Reform,” stated the Ministry of Labor.

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MANUFACTURING INDUSTRY WORKERS OPEN THE DOOR TO A NEW UNION AT GENERAL MOTORS IN SILAO In an unprecedented process in Mexican unionism, workers at the General Motors plant in Silao, Guanajuato, voted for the first time in a personal, direct, and secret manner, as required by the 2019 labor reform and the labor chapter of the USMCA, and rejected, with 55% of the votes, the collective bargaining agreement led by the “Miguel Trujillo López” Union, affiliated to the Confederation of Mexican Workers (CTM).

German de la Garza de Vecchi, Labor Services partner at Deloitte Mexico, commented that “this vote is a sample of what will be the collective labor relations in the country, and reflects a new reality, where it is clear that the workers are the ones who will decide.”

What’s next for the workers at GM-Silao?

Once the voting process at General Motors concluded, in which it was decided to terminate the Collective Bargaining Agreement (CBA), the legal process to be followed by the workers’ relationship with the company involves the filing of strike notices.

The Secretaría del Trabajo y Previsión Social has 20 days to issue the final resolution and inform the Junta Federal de Conciliación y Arbitraje (Federal Conciliation and Arbitration Board).

• Workers will cease to pay union dues in accordance with Art. 110 Fracc. VI. • The unions interested in the CCT must file a notice to strike for signing a collective bargaining agreement before the Federal Conciliation and Arbitration Board.

• All interested unions can participate if they can prove that they have the support of at least 30% of the workers, including the “Miguel Trujillo López” union, affiliated to the CTM. • If there are more than three unions, a vote must be held to determine who has the largest union representation.

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GOOD NEWS FDA GIVES FULL APPROVAL TO PFIZER/BIONTECH COVID-19 VACCINE

On Monday, the U.S. Food and Drug Administration (FDA) granted full approval for the Pfizer/BioNTech Covid-19 vaccine for persons 16 years and older. (This is the first Covid-19 vaccine to be approved by the FDA and is expected to open the door to more vaccination orders.

The Pfizer/BioNTech vaccine was authorized for emergency use in the United States as of mid-December for persons 16 years of age and older. In May, the authorization was extended to those 12 and older.

More than 170 million people in the U.S. fully vaccinated against Covid-19, more than 92 million have received the Pfizer/BioNTech vaccine.

SOURCE: CNN

“Based on the longer-term follow-up data we presented, today’s approval for those 16 years and older affirms the efficacy and safety profile of our vaccine at a time when it is urgently needed. I hope this approval will help increase confidence in our vaccine, as vaccination remains the best tool to help protect lives and achieve herd immunity. Hundreds of millions of doses of our vaccine have already been administered in the U.S. since December 2020, and we look forward to continuing to work with the U.S. government to reach more Americans,” said Albert Bourla, president and chief executive officer of Pfizer.

Full FDA approval could encourage “20-30%” of the unvaccinated to get vaccinated in the United States.

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KEY POINTS OF PRESIDENT ANDRES MANUEL LOPEZ OBRADOR’S Morning Press Conference August 18-23, 2021

RETURN TO CLASSES The President indicated that UNICEF will present a study on the damage caused by the absence of children from schools. Lopez Obrador considered that going back to school is a lower risk. He pointed out that there must be socialization among children.

INFLATION To express the question about inflation, the President commented that he is respectful of the autonomy of Banco de Mexico. He indicated that they are surely paying close attention to inflation.

He indicated that his government had fulfilled its commitment not to increase the price of energy. He pointed out that gas price is growing unjustifiably, so they decided to set a maximum price.

HIGH-LEVEL ECONOMIC DIALOGUE The Foreign Secretary confirmed that the dialogue with US authorities will take place on September 9 in Washington. The topics on the agenda will be the relocation of supply chains; coordination mechanisms in emergencies; international cooperation for development in southern Mexico and Central America; and border infrastructure.

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

RELATIONSHIP OF THE UNITED STATES AND VENEZUELA Regarding the participation that Mexico could have in these conversations between the two countries, the President spoke about the dialogue between the parties and on the part of Secretary Marcelo Ebrard said that Mexico has always maintained that a dialogue should be promoted, which corresponds to Venezuelans determine the future of their country.

Mexico has agreed to host its meetings, but it is not part of the dialogues, nor does it aspire to be.

HURRICANE GRACE The President informed that he will travel to Veracruz this week to attend to the families affected by the hurricane. He mentioned that work is being done to restore electricity and water since services were affected.

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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 1,350 active cases with hospital occupancy at 48.27%. The percentage of the population with a complete vaccination scheme increased to 78.42% in the past week. The vaccination plan continues daily with applying the complete vaccination scheme to the adult population in Tijuana, Ensenada, and Mexicali. Baja California’s Health Secretary mentioned that there are currently 13,302 vaccines available for the second dose of Pfizer, Astra Zeneca, and Sinovac.

SONORA The vast majority of Sonora’s municipalities remain considered highrisk tier or orange light, four municipalities in the maximum-risk tier or red light, five municipalities in the medium-risk tier or yellow light, and only one municipality out of 72 in the low-risk tier or green light. Official reports confirmed that are currently 2,676 active Covid-19 cases and 392 hospitalized patients. 154 new confirmed cases were reported in the past 24 hours. People suspected of COVID-19 have been detected through care centers thanks to the “Anticipa” program of the Sonora Health Secretary.

People suspected of the virus have been detected, and COVID tests have been applied.

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MEASURES TAKEN

BY STATES IN MEXICO

COAHUILA The southeastern region of Coahuila, headed by the municipality of Saltillo, is the one that worries the health authorities the most in returning to face-toface classes. A protocol was established for suspected cases ranging from isolating a classroom to temporarily closing a school.

TAMAULIPAS The Tamaulipas border begins to show improvement in Covid-19 infections since there are only four municipalities in red, and Matamoros, which has led the first place in daily cases, went to an orange traffic light, according to a report of the Ministry of Health.

NUEVO LEON This week, the Government of Nuevo Leon announced the new restrictions on businesses and shops due to the increase in COVID -19 cases due to the third wave of infections that continues in the country. According to information published on their social media, in supermarkets, food markets, convenience, and grocery stores, restaurants, shopping centers, department stores, clothing stores, customer service centers, among others, they must open with a capacity of 50%.

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MEASURES TAKEN

BY STATES IN MEXICO

QUERETARO The weekend resulted in 724 new Covid-19 infections in the state of Queretaro and 27 deaths in people who were seriously ill in the hospital; among them, a 27-year-old woman who had no previous illnesses informed the state Health Secretariat. Queretaro has an occupancy rate of 35 percent in beds with ventilators and 52 percent in beds without a ventilator, although some hospitals are already overcrowded. Based on the Negative Network of Respiratory Water Infections (IRAG), the occupancy rate is 46 percent. Of the total number of active cases in the state, 1,224 patients with isolation and home management due to mild symptoms, while another 305 are hospitalized, 99 of whom are in serious condition. So far, there is an accumulated of 79,848 infections, 51 percent of which are women. A total of 73,217 discharges and 5,102 deaths due to the virus have been reported.

AGUASCALIENTES Completing the vaccination schedule with the COVID-19 is the key to stopping this virus and avoiding contagion and medical complications requiring hospitalization, said Governor Martin Orozco Sandoval when he visited the active points to immunize people 40 years of age and older in the capital city. Accompanied by the Secretary of Health, Miguel Angel Piza Jimenez, the state Governor called on the people of Aguascalentenses to go to the vaccination sites for the second dose of the vaccine; he also invited those who have not yet received the first dose to go to the points to take care of their health and that of their loved ones. It should be noted that for this day’s vaccination day.

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MEASURES TAKEN

BY STATES IN MEXICO

GUANAJUATO The growth in Covid-19 infections and the complication of the health of more and more patients also have the General Hospital of San Luis de la Paz and the Community Hospital of Apaseo el Alto at maximum capacity, at least as of this August 22 cutoff. Such an increasing rate of cases has also caused three other hospitals in Guanajuato to reach 90% or more of their capacity: the General Hospital of IMSS in Celaya, the General Hospital of San Jose Iturbide, and the Community Hospital of Jerecuaro, according to information from the IRAG Network Information System. On the other hand, four hospitals are in yellow (moderate alert), as they are above 50% of their capacity: the General Hospitals of Salamanca, Acámbaro, and the capital city, as well as the IMSS Regional General Hospital No. 58 in Leon.

JALISCO With data until August 23, the Ministry of Health of Jalisco registered 1,804 new coronavirus infections, bringing the total number of confirmed cases to 322,336 throughout the state and reporting 24 deaths, bringing the total number of deaths in the state to 14,067. Adding to the negative results reported by all laboratories, 1 million 124 thousand 341 cases have been ruled out to date, and 22 thousand 782 cases are suspected in Jalisco.

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MEASURES TAKEN

BY STATES IN MEXICO

STATE OF MEXICO The State of Mexico reported six hospitals, focused on the care of covid patients, with 100 percent occupancy in their general beds, of which four are located in the Toluca Valley, in municipalities such as Metepec, Toluca, San Jose del Rincon and San Felipe del Progreso. This Sunday, the State of Mexico reported 37,622 patients in home care, 1,871 people hospitalized in various medical units, and 28,932.

CDMX The numbers in Mexico City continue to increase during the third wave, mainly among young people and unvaccinated adults, due to the spread of the Delta, Gamma, and Alpha variants of the SARSCoV-2 coronavirus. On new positive cases, when comparing the total accumulated confirmed cases with the previous week, an increase of 4 percent is observed at the beginning of this week.

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VACCINATION PROGRESS

As of August 23, 80,886,612 doses of vaccine have been applied in all Mexico since December 24, of which 29,402,096 have the complete scheme. 56 million 409 thousand 551 people have received at least one dose against COVID-19, of which 55 percent, representing 30 million 991 thousand 824, have received a complete schedule, and 45 percent, equivalent to 25 million 417 thousand 727 people, have received one dose.

Mexico City, Quintana Roo, Sinaloa, Baja California and Queretaro reached vaccination coverage rates of 80 to 92 percent; Zacatecas, Baja California Sur, Chihuahua, Colima, Aguascalientes, Nayarit, Hidalgo, Yucatan, Sonora and San Luis Potosi reported coverage rates of 70 to 79 percent.

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TOWARDS THE “NEW NORMAL”

DISTRIBUTION OF DEATHS PER STATE DUE TO THE PANDEMIC

INFORMATION UPDATED ON AUGUST 23, 2021 AT 19:00 HRS LOCAL TIME.

NEW CASES REPORTED: 6,543

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

CONFIRMED CASES: 3,231,616

NEW DEATHS REPORTED: 371

CONFIRMED DEATHS: 253,526

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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 98.27

0 to 10.0 (0 states)

40.1 to 50 (2 states)

10.1 to 20 (1 states)

50.1 to 60 (3 states)

20.1 to 30 (1 states)

60.1 to 70 (6 states)

30.1 to 40 (1 states)

>70 (18 states)

Elaborated by Prodensa with information from the Health Ministry of Mexico

PANDEMIC’S SITUATION IN THE WORLD • As of August 23, 2021, globally there have been reported 211,730,035 confirmed cases (441,677 new cases) of COVID-19 and 4,430,697 deaths (8,031 new deaths*). Lethal rate: 2.1%.

• In the last 14 days, the number of new cases accounts for 4% (8,876,277) 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 24

DEATH INCIDENTS IN POPULATION

BY REGION AS OF AUGUST 24

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

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EHS

RECOMMENDATIONS DELTA VARIANT: VACCINES

Vaccines are highly effective, including against the Delta variant.

The COVID-19 vaccines authorized are highly effective at preventing severe disease and death, including against the Delta variant. But they are not 100% effective, and some fully vaccinated people will become infected (called a breakthrough infection) and experience illness. For such people, the vaccine still provides them strong protection against serious illness and death.

Masks Given what we know about the Delta variant, vaccine effectiveness, and current vaccine coverage, layered prevention strategies, such as wearing masks, are needed to reduce the transmission of this variant.

• At this time, as we build the level of vaccination nationwide, we must also use all the prevention strategies available, including masking indoors in public places, to stop transmission and stop the epidemic.

• Vaccines are playing a crucial role in limiting the spread of the virus and minimizing severe disease. Although vaccines are highly effective, they are not perfect, and there will be vaccine breakthrough infections. Millions of citizens are vaccinated, and that number is growing. This means that even though the risk of breakthrough infections is low, there will be thousands of fully vaccinated people who become infected and able to infect others, especially with the surging spread of the Delta variant. Low vaccination coverage in many communities is driving the current rapid and large surge in cases associated with the Delta variant, increasing the chances that even more concerning variants could emerge.

DAVID ANTUNEZ Environmental, Health, and Safety Director.

WHY IS IT SO IMPORTANT TO BUILD COMMUNITIES INSIDE YOUR COMPANY?

YOELLE ROJAS Public Affairs & Communications Director

Organizations are made up of individuals, and individuals look for other people with the same interests and goals to build tribes or communities. These communities are highly suitable to the organization since they contribute to wellbeing, happiness, productivity, and retention.

Allowing and providing time and spaces for your employees to gather and get to know each other would benefit the company in the long term. Give your people time to gather and share their interests and passion. Doing this allows individuals to create clusters of discussion, support, collaboration, ideas, and learning. People will build a collaborative environment where they will identify the best key players in a matter of time.

Communities bring people together no matter the distance; it will also increase people’s satisfaction by developing a sense of belonging while acquiring more knowledge.

Another important aspect is that your team will develop trust since they know each other; the most trustable the team is most successful they will become.

If you want to learn more about how to build communities inside your company, contact us.

PUBLIC AFFAIRS

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LABOR

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THE NEW LABOR MODEL UNDER THE COVID ERA The implementation of the labor law reform, particularly in collective labor matters, requires the participation of workers in new democratic processes where they can freely and secretly vote. Generally, the voting process takes place in the workplace. Although companies cannot participate or interfere, they still have the responsibility to ensure that the appropriate conditions exist to guarantee that all health prevention measures and protocols are followed.

ALVARO GARCIA

Providing or setting up ventilated or open spaces, free of any interference from the employer, with no more than 50 people at the same time and making sure that all attendants will observe social distancing and will wear face masks will provide appropriate conditions for the democratic processes.

HR, Vice President

It is key to comply with the labor reform and the USMCA labor provisions under a strong observance of all health protocols.

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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