The transportation manufacturing industry (which includes automotive and aerospace), along with the mining and constructions industries, will be able to restart operations on June 1, provided that they comply with health and safety precautions to return to activities. There is consensus by industry members and their corresponding associations that operations may start as soon as health and safety measures are complied upon. However, the language of the executive order may be read in a different manner, allowing to restart operations only until June 1.
Companies may start preparing the implementation of health and safety measures as early as May 18 and those companies performing essential activities, such as the automotive and aerospace industries, will be able to start operations with no formality other than implementing health and safety measures consistent with the guidelines to be issued by the Ministry of Health, in collaboration with the Ministry of Economy, Ministry of Labor and Social Security Institute, once such measures are implemented.
The Social Security Institute has already issued certain guidelines for the implementation of health and safety measures, which you may find here. We expect that the guidelines to be issued will not be more restrictive than those already in place at this time, but rather confirm these guidelines already in place.
Companies will self-implement these health and safety measures in a bona fide effort to comply with the guidelines; however, the Mexican government will continue exercising its inspection authority and will be able to assess penalties, including closure of the premises, if companies do not implement such measures consistently with the guidelines.
Since the implementation of health and safety measures is based on a self-application bone fide effort, we strongly suggest implementing our risk management recommendations, which you may find here, emphasizing the notarized affidavit evidencing compliance of such measures.
Finally, in addition to the measures mentioned above, automotive and auto parts companies exporting their products, such as maquiladoras, will need to apply the protocols required in their home countries. Thus, we suggest that these companies obtain evidence verifying that they comply with their home country protocols, such evidence being an affidavit, a legal opinion, etc.
Foley has created a multi-disciplinary and multi-jurisdictional team to respond to COVID 19, which has prepared a wealth of topical client resources and is prepared to help our clients meet the legal and business challenges that the coronavirus outbreak is creating for stakeholders across a range of industries. Click here for Foley’s Coronavirus Resource Center to stay apprised of relevant developments, insights and resources to support your business during this challenging time. To receive this content directly in your inbox, click here and submit the form. For more information, please contact your Foley relationship partner.
