The Mexican government announced an Executive Order that confirms manufacturing of transportation equipment includes the automotive industry and is an essential activity permitted to operate, with a restart date of June 1. Automotive manufacturers will be required to adhere to health protocols in order to protect against COVID-19. While the specific health protocols are still pending and have not yet been announced, automotive suppliers should consider the following operational recommendations as they prepare to resume operations.
As provided under the Federal Labor Law, it is employers’ burden to provide a health safe environment to their employees. As a result of that, failure to provide same while operating it may cause not only a labor work hazard as already acknowledged by the Social Security Mexican Institute and the labor authorities, but also could result in undesirable exposure to tort claims. Likewise, failure to implement such measures, depending on the language and coverage of the company’s insurance policy may provide room to the insurance company to refuse coverage for such tort or business interruption claims. Moreover, by applying the referred set of mandatory and suggested preventive measures, the company would be better positioned to face an inspection either from the labor authorities or health authorities, whether State or Federal, whilst the sanitary emergency endures (so far until May 30th).
In all cases, the suggested practical measures should be adapted on a case-by-case basis to each company’s particular needs and circumstances. Moreover, the referred measures may need to be revisited if the government issues a special set of rules, as is anticipated.
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