As 2021 comes to an end, this is the perfect time to start analyzing the industry trends for 2022. In this blog post, our team of experts and industry leaders will present what to expect in the upcoming year and their insights on different topics such as Labor, Trade Compliance, Institutional Relations, and Environmental, Health, and Safety.
Labor Insights by Alvaro Garcia, Vicepresident of Human Resources.
2022, an upcoming year of impactful labor changes.
Following three years of multiple changes to the labor law, new labor provision of the USMCA, and new international labor agreements ratified by Mexico, we can anticipate that next year will be the decisive, key year for full implementation, transition to the new labor model and for assuring compliance.
- Key aspects to keep track are: Legitimation of Collective Bargaining Agreements. Even when unions will have until May 1, 2023, to conduct the mandatory, one-time legitimation process, next year is expected and recommended to see an increasing number of legitimation taking place. Still, during 2021 the total number of CBA that have passed the legitimation process is minimal compared to the total number of CBA to be legitimized.
- New labor Law System. The third and final phase of the new labor law system will become effective during 2022. States with a strong manufacturing presence, especially in the north of Mexico, will finally transition to the new labor system. Starting May 2022, all new individual lawsuits in Mexico will be handled by the new labor courts and following the new system.
- New Labor Relations System. All collective relations in Mexico will observe the new regulations, both of Mexican labor law and the USMCA provisions. The new system requires an active participation of the workers in collective matters, especially the vote, via secret ballot, to support the terms that have been negotiated every two years when the CBA goes full negotiation.
Trade Compliance Insights by Alberto Ortuzar, Trade Compliance Director
- Greater scrutiny is expected in the customs process of imported goods. On January 1, 2022, will enter into operation a new governmental body called the National Customs Agency which will be a separate entity from the Tax Administration Service in charge of reinforcing national security at the access points of the country and collecting taxes for cross-border transactions.
- Enforcement actions on goods by all means of transportation within Mexico will increase. On January 1, 2022, a new regulation established by both the Ministry of Finance and the Ministry of Transportation will require issuing a digital tax receipt “CFDI” in advance to the movement of goods on commercial transactions. Detailed information on the type of merchandise, quantities, routes, and destinations is required. Discrepancies may be subject to fines and seizures.
Institutional Relations Insights by Monica Lugo, Institutional Relations Director
These are 5 key aspects to consider the following year:
- Keep an eye on the electric reform and the referendum on President Andres Manuel Lopez Obrador’s presidency planned for next year. It will be a game-changer for the rest of AMLO’s administration.
- On June 5th, 2022, there will be governor elections of 6 states: Aguascalientes, Durango, Hidalgo, Oaxaca, Quintana Roo and Tamaulipas. Be aware of the results as Morena is a front runner for these elections. If you have business in these states, we recommend approaching the candidates as soon as they are officially running their campaigns.
- As always, we recommend to be in full compliance with all government requirements. In particular, be aware and ready for SAT ́s modifications to regulations as Complemento Carta Porte and CFDI 4.0.
- USMCA: it will be likely that Mexico’s and Canada’s concerns regarding the Rule of Origin for Autos will continue. Labor and Environmental issues are likely to continue as they are part of Biden’s Administration priorities. Compliance with the Labor Law in Mexico is a must in order to avoid concerns from the US or Canada in labor issues.
- Covid-19 and variants: continue to be careful and implement all health recommendations. New variants could be a bigger risk for next year in supply chains if lockdowns continue, particularly in Asia.
EHS Insights by David Antunez, EHS Director
Vaccines. Vaccines remain the best public health measure to protect people from COVID-19, slow transmission, and reduce the likelihood of new variants emerging.
- COVID-19 vaccines are highly effective at preventing severe illness, hospitalizations, and death.
- Scientists are currently investigating Omicron, including how protected fully vaccinated people will be against infection, hospitalization, and death.
- The government recommends that everyone 5 years and older protect themselves from COVID-19 by getting fully vaccinated.
- The government recommends that everyone ages 18 years and older should get a booster shot at least two months after their initial J&J/Janssen vaccine or six months after completing their primary COVID-19 vaccination series of Pfizer-BioNTech or Moderna.
Masks. Masks offer protection against all variants.
- The government continues to recommend wearing a mask in public indoor settings in areas of substantial or high community transmission, regardless of vaccination status.
- The government provides advice about masks for people who want to learn more about what type of mask is right for them, depending on their circumstances.
Testing. Tests can tell you if you are currently infected with COVID-19.
- Two types of tests are used to test for current infection: nucleic acid amplification tests (NAATs) and antigen tests. NAAT and antigen tests can only tell you if you have a current infection.
- Individuals can use the COVID-19 Viral Testing Tool to help determine what kind of test to seek.
- Additional tests would be needed to determine if Omicron caused your infection.
- Visit your state, local, or regional health department’s website to look for the latest local information on testing.
- Self-tests can be used at home or anywhere, are easy to use, and produce rapid results.
- If your self-test has a positive result, stay home or isolate for 10 days, wear a mask if you have contact with others, and call your healthcare provider.
- Call your healthcare provider or public health department if you have any questions about your self-test result.
Until we know more about the risk of Omicron, it is important to use all tools available to protect yourself and others.
Contact us if you need any support to implement your new strategies in your operation. We are ready to assist you!