FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

THE AUTOMOTIVE INDUSTRYIN MEXICO

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

Federal Regulations on Occupational Health, Safety, and Environment [RFSHMAT]

Official Mexican

Standards [NOM]

Federal Labor Law [LFT],

Art. 527

General Regulations on Inspection and Penalties for Violation of Labor Laws [RGIASVLL]

Constitution of the United Mexican States

Art. 123, Paragraph “A”, sub-paragraph XXXI

International Agreements

REGULATORY FRAMEWORK FOR INSPECTIONSREGULATORY FRAMEWORK FOR INSPECTIONS

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

1. Textiles

2. Electrical Power

3. Films

4. Rubber

5. Sugar

6. Mining

7. Iron and Steel

8. Fossil Fuels

9. Petrochemicals

10. Cement

11. Lime

12. Automotive12. Automotive

13. Chemicals

14. Cellulose and Paper

15. Oils and Vegetable Fats

16. Foodstuffs

17. Beverages

18. Railroad

19. Unprocessed Wood

20. Glass

21. Tobacco

22. Banking and Credit

INDUSTRIAL SECTORS AND SERVICESINDUSTRIAL SECTORS AND SERVICES

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

SONORASONORA

FORD (2, 676)FORD (2, 676)CHIHUAHUACHIHUAHUA

FORD (1, 362)FORD (1, 362)

COAHUILACOAHUILA

CHRYSLER (3, 009)CHRYSLER (3, 009)

GENERAL MOTORS (5, 585)GENERAL MOTORS (5, 585)

JALISCOJALISCO

HONDA (1, 378)HONDA (1, 378)

GUANAJUATOGUANAJUATO

GENERAL MOTORS (3, 610)GENERAL MOTORS (3, 610)

PUEBLAPUEBLA

VOLKSWAGEN (17, 000) VOLKSWAGEN (17, 000)

MEXICO STATEMEXICO STATE

NISSAN (623)NISSAN (623)

GENERAL MOTORS (662)GENERAL MOTORS (662)

CHRYSLER (4, 245)CHRYSLER (4, 245)

MERCEDES BENZ (1, 208)MERCEDES BENZ (1, 208)

Major Assembly PlantsMajor Assembly Plants

Number of companies: 1,254Workers employed: 460,020

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

INSPECTIONS

ACKNOWLEDGEMENT AND ACCREDITATION OF HEALTH AND SAFETY MANAGEMENT SYSTEMS

LABOR STATEMENT

REVIEW UNITS

Acciones Estratégicas

Inspection

Federal Labor Law, Art. 523, section VI - Application of workplace standards is the responsibility of the Department of Workplace Inspection

RGIASVLL, Art. 12.- All worksites shall be inspected, regardless of their classification

Verifies compliance with OFFICIAL MEXICAN STANDARDS set by the Secretariat, with Units A, B and C submitting the pertinent reports.

Review Units

Acknowledges companies that implement Occupational Health and Safety Management Systems

Self-management Program

RGIASVLL, Art. 15.- The authorities can check compliance with regulations on the basis of reviews or forms

Labor Statement

INSPECTIONINSPECTION PROCESS PROCESS

OPERATING PROCEDURE

CARRY OUT ON-SITE

INSPECTION

GUIDE TO RIGHTS AND OBLIGATIONS

OF THE PARTY INSPECTED

REVIEW OF DOCUMENTS

DRAFT DETAILED REPORT AND SUGGESTED SAFETY AND SANITATION MEASURES

A

NOTIFICATIONOF CITATION AND LIST OF DOCUMENTS

INSPECTION ORDER

continued

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

ADMINISTRATIVE ADMINISTRATIVE PROCEDUREPROCEDURE

ANNUAL INSPECTION PROGRAM

ORDER IS GIVEN TO INSPECTOR

WALK-THROUGH OF

ON-SITE WORK AREAS

SUBMIT REPORT FOR ANALYSIS

AND FOLLOW-UP

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

continued

DRAFTING OF TECHNICAL

CITATION FOR HEALTH AND

SAFETY MEASURES

DETERMINATION OF ALLEGED

VIOLATIONS IN THIS MATTER

ORDER TO VERIFY INSPECTION

INSPECTOR:APPEARS ON

DAY AND TIME OF THE VISIT

ON-SITE WALK-THROUGH TO

VERIFY COMPLIANCE WITH

MEASURES

SUBMIT ORDER TO INSPECTOR

NOTIFICATION AND SERVING OF THE CITATATION AND GUIDE TO RIGHTS AND OBLIGATIONS

OF PARTY INSPECTED

DRAFTING OF THE INSPECTION

REPORT

PENALTIES PROCEEDING

INSPECTION INSPECTION PROCESSPROCESS

ADMINISTRATIVE ADMINISTRATIVE PROCEDUREPROCEDURE

OPERATING PROCEDURE

MAIN RISKS IN THE MEXICAN AUTOMOTIVE INDUSTRYMAIN RISKS IN THE MEXICAN AUTOMOTIVE INDUSTRY

REMARKSREMARKSCRITICAL AREACRITICAL AREARISK

APPLICABLE APPLICABLE

STANDARD (STANDARD (NOMNOM))LEVEL OFLEVEL OF

COMPLIANCECOMPLIANCE

CHEMICAL POLLUTANTS: LEAD, TOTAL AND BREATHABLE DUST, ASBESTOS FIBER, TOLUENE, METHYL, ISOBUTYL KETONE, AND MINERAL OIL MIST.

SOLDERING, PAINTING AREA, TINNING STATION, PRODUCTION, AGITATOR, GRINDING, DUST COLLECTOR, VEHICLE BODY DEPARTMENT, IRON, STEEL AND ALUMINUM AREA.

STANDARD-010-STPS-1999

50% COMPLIES WITH THE ESTABLISHED LEVELS

SMELTING, ENTRY INTO AND SMELTING, ENTRY INTO AND EXIT FROM PAINT KILN.EXIT FROM PAINT KILN.

HIGH TEMPERATURES STANDARD-015-STPS-2001

100%COMPLIES WITH THE ESTABLISHED LEVELS

NOISE

VIBRATIONS

CUTTERS, PUMP ROOM,

PRODUCTION OF DIE CASTS, ASSEMBLY LINE

CORK AND STOPPER AREAS.

STANDARD-011-STPS-2001

STANDARD-024-STPS-2001

40% COMPLIES WITH THE ESTABLISHED LEVELS

LIGHTING

CIRCUITS, CUTTERS, ASSEMBLY, MAINTENANCE SHOP, SUBASSEMBLY WAREHOUSE, SEWING LINE, PRESS AND QUALITY CONTROL AREA.

STANDARD-025-STPS-1999 50% LEVELS UNDER PERMISSIBLE

LIMITS

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

• THE AUTOMOTIVE INDUSTRY IS RESPONSIBLE FOR 16% OF MANUFACTURING’S CONTRIBUTION TO GDP

• 22% OF EXPORTS

THE AUTO PARTS INDUSTRY IS RESPONSIBLE FOR 6.9% OF MANUFACTURING’S CONTRIBUTION TO GDP

10% OF EXPORTS

THE MEXICAN AUTOMOTIVE INDUSTRY COMPRISES:

• FINISHED PRODUCT INDUSTRY (MANUFACTURE AND ASSEMBLY)

AUTO PARTS INDUSTRY (MANUFACTURE OF PARTS AND COMPONENTS, SUCH AS ORIGINAL EQUIPMENT FOR THE FINISHED PRODUCT INDUSTRY)

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

VEHICLE EXPORTS VEHICLE EXPORTS

BY REGIONAL DESTINATIONBY REGIONAL DESTINATION

NORTH AMERICA NORTH AMERICA 94.09%94.09%

EUROPEEUROPE

2.46%2.46%

SOUTH AMERICA SOUTH AMERICA 1.53%1.53%

ASIA 0%

CENTRAL AMERICA AND THE CARIBBEAN 0.68%

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

1.8 MILLION UNITS ARE PRODUCED IN MEXICO

1.8 MILLION UNITS ARE PRODUCED IN MEXICO

1.4 MILLION VEHICLES ARE EXPORTED

1.4 MILLION VEHICLES ARE EXPORTED

MEXICO RANKS 9TH IN THE WORLD IN VEHICLE

PRODUCTION

MEXICO RANKS 9TH IN THE WORLD IN VEHICLE

PRODUCTION

THE AUTOMOTIVE INDUSTRY IS THE

SECOND MOST IMPORTANT SECTOR

AFTER THE PETROCHEMICAL

INDUSTRY

THE AUTOMOTIVE INDUSTRY IS THE

SECOND MOST IMPORTANT SECTOR

AFTER THE PETROCHEMICAL

INDUSTRY

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

ORIENTATION AND TECHNICAL ADVISORY SERVICES TO COMPLY WITH LABOR REGULATIONS.

HEALTH AND SAFETY SHALL BE INCLUDED AS PART OF WORKSITES’ GENERAL MANAGEMENT

PROMOTE PREVENTION-FRIENDLY PUBLIC BEHAVIOR .

DECREASE IN WORK-RELATED INJURY INSURANCE PREMIUM

Self-Management Program.Self-Management Program.Self-Management Program.Self-Management Program.

INCLUDES COMPANIES WHOSE ECONÓMIC ACTIVITIES HAVE HIGHEST CLAIMS RATES

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

Baja California

16%

Chihuahua

20%

Coahuila

18%

Guanajuato4%

Jalisco4%

Mexico State4%

Nuevo León

8%

Sonora

14%

Tamaulipas

12%

LIST OF AUTOMOTIVE INDUSTRY LIST OF AUTOMOTIVE INDUSTRY COMPANIES INCLUDED IN THE SELF-COMPANIES INCLUDED IN THE SELF-

MANAGEMENT PROGRAM.MANAGEMENT PROGRAM.

TOTAL 110TOTAL 110

6%

16%

5%18%

Manufacture and/or assembly of vehicle

bodies

Manufacture and/or

assembly of parts and

accessories

55%55%

Manufacture and/or assembly of parts for the electrical

system

Manufacture and/or assembly

of enginesManufacture of mechanical systems

and their parts

COMPANIES INCLUDED IN THE SELF-MANAGEMENT PROGRAM BY ECONÓMIC

ACTIVITY

FEDERAL DEPARTMENT OF WORKPLACE INSPECTIONFEDERAL DEPARTMENT OF WORKPLACE INSPECTION

2nd. Sustained Improvement Phase

33rd. Self-management Phase

9

1st. Management of compliance with labor regulations

39Companies Included

110

ACKNOWLEDGEMENTS ACCORDED BY ACKNOWLEDGEMENTS ACCORDED BY SECRETARIAT OF LABOR AND SOCIAL WELFARE SECRETARIAT OF LABOR AND SOCIAL WELFARE [[S.T.P.S.]S.T.P.S.]

Secretariat of Labor and Social WelfareFEDERAL DEPARTMENT OF WORKPLACE FEDERAL DEPARTMENT OF WORKPLACE

INSPECTIONINSPECTION

June, 2003.June, 2003.

THANK YOU FOR YOUR ATTENTION.THANK YOU FOR YOUR ATTENTION.