Labor Analysis - Dec. 2020

Summary

By: José Ma. Avelar Mendoza

1.    What is it, and what is Home office a what is not?

The new federal regulations on Home office, which regulates companies' obligations to their workers, came into force on Tuesday, following its adoption in December to the Union Congress.

Home office is a subordinate work organization that consists of carrying out paid activities, in a place other than the employer's establishment, so the physical presence of the employee in the workplace is not required. It differs from homework, which is one that is usually performed for an employer, at the employee's home or in premises freely chosen by him, but without the immediate supervision or address of the person providing the work. Home office shall not be that which is carried out on an occasional or sporadic basis: the new provisions shall apply to industrial relations which take place more than 40% of the time at the employee's home.

The Mexican Official Standard (NOM) governing health and safety obligations for the home office will be published no later than 18 months.

The general framework for defining Home office

The home office conditions must be recorded in writing by means of a contract, and each party will have to keep a copy.

                I.        The parties shall have the right of reversibility to face-to-face work, for which they may agree on the mechanisms, processes and times necessary to make the return to that modality valid.

               II.        Home office must also form part of the collective employment contract between trade unions and undertakings, and a copy must be provided free of charge to each employee under this modality.

              III.        Employers who do not have a collective agreement should include Home office in their internal regulations and establish mechanisms to ensure linkage and contact between workers working in the home office.

Written conditions

a.      Name, nationality, age, gender, marital status, Single Population Registration Key (CURP), Federal Taxpayer Registration (RFC) and worker and employer address

b.      Nature and characteristics of the work: the service(s) to be provided, which will be determined as accurately as possible

c.      If the working relationship is for work or time determined, by season, initial training or indefinitely and, where appropriate, is subject to a trial period

d.      The place where the work is provided, the mechanisms of contact and supervision between the parties, as well as the duration of the day and the distribution of schedules, if they do not exceed the legal maximums

e.      The salary and form of remuneration (the description and amount that the employer will pay to the working person under the condition of Home office for payment of services at home), as well as the day or date and place of payment

f.       Other working conditions, such as rest days, holidays and others that suit the worker and employer

g.      Equipment and work supplies, including those related to safety and health obligations that are handed over to the working person under the Home office modality

Obligations of the parties

1)      Home office workers have the right to enjoy the same conditions and treatment as face-to-face employees, i.e. those who provide their services at the company's headquarters. (As long as it's equal work).

2)      In addition, companies should observe a gender perspective that allows the reconciliation of the personal life and availability of working persons under the modality of Home office in the working day.

3)      The mechanisms, operating systems and any technology used to monitor the home office must be proportionate to its objective, guaranteeing the right to privacy of workers.

4)      Video cameras and microphones may only be used to monitor the home office in an extraordinary manner or where the nature of the functions performed by the employee under Home office mode requires it.

Patterns

a.      Provide, install and maintain the equipment needed for Home office such as computer equipment, ergonomic chairs, printers, among others

b.      Receive the job in a timely manner and pay wages in the way and dates stipulated

c.      Bear the costs arising from work through the Home office modality, including, where appropriate, the payment of telecommunication services and the proportional share of electricity

d.      Keep track of inputs delivered to working persons under the Home office modality, in compliance with occupational safety and health provisions established by the Ministry of Labour (STPS)

e.      Implement mechanisms that preserve the security of information and data used by workers in the Home office mode

f.       Respecting the right to disconnect workers in the Home office mode at the end of the working day

g.      Enrolling workers in the Home office modality of the compulsory social security scheme

h.      Establish the training and advisory mechanisms necessary to ensure the adaptation, learning and proper use of the information technologies of working persons in the Home office mode, with emphasis on those that change from face-to-face to Home office

Employees

a.      Take the most excellent care in keeping and preserving the equipment, materials and tools you receive from the pattern

b.      Report with opportunity on agreed costs for the use of telecommunications services and electricity consumption, arising from Home office

c.      Obey and conduct yourself in adherence to the occupational safety and health provisions established by the employer

d.      Address and use mechanisms and operating systems to monitor your activities

e.      Address the data protection policies and mechanisms used in the performance of your activities, as well as restrictions on their use and storage

Source: Official Journal

2.    Federal bureaucrats will remain in the home office until April 30

Due to the rise of coronavirus contagion, the federal government extended remote work for public administration employees until April 30, the fourth postponement of the measure initially implemented on March 23 last year. Now, five federal entities are at a red light by the scope of covid-19, including Mexico City, which concentrates the largest number of public administration units and entities. The Public Service Secretariat (SFP) enacted last Friday afternoon the extension of the agreement to mitigate the spread of covid-19. With the new wing of the home office, bureaucrats will have worked remotely for more than a year, since on March 23, 2020, the Public Service issued the first agreement to allow the modality, on that occasion, the measure was until April 17, then extended to July 31, after September 30 and then to January 4(Economista).

3.    Increased minimum wages higher than inflation 

Overall prices increased by 3.15% during 2020, while the general minimum wage increased by 20% during that year. Over the past three years, the minimum wage has increased by 60.3% while prices have only increased by 6%. 15% increase this year is also not a risk to inflation According to data from the National Institute of Statistics and Geography (INEGI), the overall price hike in the economy was 3.15% during 2020, the prices of the basic basket 3.43% and those of the minimum consumption basket 3.44%. The overall minimum wage increased by 20% during the same year, from 102.68 to 123.22 pesos per day, indicates that the minimum wage increase was 6.34 times higher than inflation. Contrary to the dogma that the minimum wage causes an increase in inflation, the historical increases of 2019 and 2020 have not led to a price increase in the economy, but, on the contrary, have benefited the pockets of those who perceive the least, establishes an analysis of the National Minimum Wage Commission (STPS).

4.    Asks Aeromexico to terminate collective contracts with trade unions

Grupo Aeromexico requested the Mexican labor authorities to terminate the current collective working agreements with the Trade Union Association of Aviator Pilots (ASPA) and the Trade Union Association of Aviation Overcargos (ASSA) to access in addition to the billion-dollar financing, granted by Apollo Global Management. The airline said, negotiations to adjust these contracts have not been successfully concluded, which is essential to comply with the commitments and obligations required by the anchor. "As a result, we have decided to request to terminate, in the wake of the notorious fact of force majeure that indubitably affects us, the current collective working agreements with our ASPA and ASSA unions, which has been duly presented, on this date, to the competent labour authorities in full compliance with the applicable provisions of the Federal Labour Law," he said at a relevant event sent to the Mexican Stock Exchange (Reforma).

5.    Wage review starts at UAM by 2021

The Metropolitan Autonomous University (UAM) and the Independent Workers' Union of that study house (SITUAM) initiated the 2021 wage review, on-demand for a direct 20% increase in salary and 15% to the tabulator of the institution's academic and administrative staff. The site expires at 23 hours next one in February. At the beginning of the talks, conducted in a virtual manner and mediated by the Federal Conciliation and Arbitration Board (JFCA), both parties agreed on the agenda of future meetings, where the trade union representation filed the statement of claims and, on the other hand, the authorities explained the economic conditions of the institution (Jornada).

6.    Infonavit and union agree to wage increase of up to 4.8%

The National Workers' Housing Fund Institute (Infonavit) and the Infonavit National Workers' Union agreed on a pay increase from 2.8% to 4.8%.  The Infonavit, signed the agreement on wages review and economic benefits for the annual review of the Collective Labor agreement 2021-2022. The agreement provides a differentiated pay increase for unionized and non-unionized technical staff, rising from 2.8 per cent to 4.8 per cent, the most significant increase for lower income (Jornada).

7.    Accepts the JFCA evidence and testimony presented by sutNotimex

By continuing the imputability trial as part of the union dispute hearings at the Mexican State News Agency (Notimex), the legal representation of this information medium presented 86 testimonies and evidence, which were accepted for review as part of the process before the Federal Conciliation and Arbitration Board (JFCA) during a hearing held yesterday afternoon. The trial was promoted by its Single Workers' Union (SutNotimex) for the labour authority to force a resolution, alluding to an alleged violation of the labor rights of strikers (Jornada).