Shelter Companies Help Manufactures Find Mexican Labor!!

There are many reason to set up manufacturing units through shelter companies in Mexico. It’s important for small manufacturing units to focus on what they do best. Rather than investing in buildings and warehouses, seeking international attorneys and accountants, or creating their own HR infrastructure, they should be focusing on product manufacturing. Mexican shelter programs refer to the initiation and maintenance of low-cost and low-risk manufacturing units. Mexico ensures foreign manufacturers compliance with Mexican labor laws, and provides a wide range of services. Mexico is also a great place for assembly and labor intensive processes. Due to stability and low turnover of workers, costs can remain low. Several multinational companies have found success with manufacturing in Mexico. Labor laws are set in place by the federal government. There are certain things that companies entering into the world of Mexican manufacturing need to know.

• Synopsis: The Mexican revolution that began in 1910 gave workers the right to strike and unionise. It also provided protection for women, children, and eight working hours. It has not changed the labor legal framework drastically.

• Dismissing an employee: Dismissing an employee can be very costly. Sometimes these costs can be mitigated to a certain degree. For example, if a worker is fired without cause, that worker must be provided with 3 months’ salary. If not paid at the time of dismissal, the employee is liable to seek the original sum, plus additional wages.

• The Mexican work day: In a week, workers are entitled to a full day’s rest with full salary and six working days.

• Overtime in Mexico: If any employee works on a holiday for more than the normal working hours, then he/she is entitled to triple the normal hourly wage. If an employee works for overtime on working days, then he is provided double the hourly wage.

• Worker resignation: If any employee quits his/her job on his own, the employer must provide his pro-rated end-profit sharing and part of his vacation. If any worker has been working for 15 consecutive years, he must be provided with an additional sum equal to 12 days’ pay.

• Vacation: Mexican labourers are provided with a yearly vacation, which is not less than six working days. In addition, the employee will be paid 25% of the vacation premium calculated on his salary.

• Profit sharing: Employees must be provided with 10% of the profit. Employees must be employed for 60 days or more to receive this benefit. These profit sharing funds are not calculated when it comes to determination of annual salary.

Ivemsa offers full shelter Mexico manufacturing services. Learn how Ivemsa can help lower manufacturing costs and maximize efficiency.