Doing Business

Doing Business in Mexico 2015

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17 Doing Business in Mexico 2015 Public/private sector cooperation As part of the participation of the public sector in the local economy, the government- owned and -operated development banks, such as Nacional Financiera, S.N.C. and Banco Nacional de Comercio Exterior, S.N.C., have been acting as a complement to the private financial sector, to promote saving and investments , the development of the financial system and the growth of industrial and infrastructure projects. Under the Financial Reform to be applied during 2014, the mandates of the development banks broaden, and made it more prone to provide financial assistance to SME´s and lower income population. Foreign investors receive full cooperation from the National Commission on Foreign Investment, and those wishing to establish or expand in-bond processing companies can find support from the Division of Foreign Trade, both of which form part of the Ministry of the Economy. Labor/management relations Because of the fast-growing population of the country in the last century, Mexico has a young labor force. Most companies find that, with adequate training programs, the skills of inexperienced workers can be readily upgraded and high-quality work is obtained, sometimes with somewhat more on-the-line supervision than is customary in more industrialized countries. In-house training is used at skilled and managerial level. For many years Mexican labor law has clearly favored employees in their relations with management. National labor unions have become quite strong in a number of industries, particularly petroleum, telephones, electricity, mining, airlines and entertainment. Labor law grants the right to form a union for collective-bargaining purposes to groups of 20 or more employees. Collective labor contracts are signed by almost all industrial companies. Nevertheless, satisfactory labor relations are maintained at most companies. Fringe benefits, including mandatory profit sharing to employees and social security premiums to cover current medical expenses and retirement pensions, are usually a significant portion of labor costs, often about one-third of the total. See Chapter 10 for a more detailed discussion. Fringe benefits, including mandatory profit sharing to employees and social security premiums to cover current medical expenses and retirement pensions, are usually a significant portion of labor costs, often about one-third of the total. See Chapter 10 for a more detailed discussion. 2

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