Issue 145 – August / September 2019

October 8, 2019
New United States Ambassador to Mexico


By Mario Melgar-Adalid

The United States’ ambassador to Mexico has always played an important role in the bilateral relationship. The recent arrival of the new ambassador, replacing Ambassador Roberta Jacobson, who was thought to have played a positive role during her tenure, was well received.  Such appointment formalizes the United States’ official diplomatic representation in Mexico. The new ambassador, Christopher Landau, is a prominent lawyer who is fluent in Spanish and has notable academic, professional and personal credentials. These characteristic are meaningful, because they serve as an indication of the importance of the bilateral relationship. In this case, the new envoy’s attributes are outstanding: Landau is a graduate of Harvard University, where he received a bachelor’s degree in Latin American Studies, as well … read more

October 8, 2019

Political Thermometer

Upon taking office, Mexican President Andrés Manuel López Obrador instituted the remarkable republican practice of appearing every morning before the public, news reporters and the media. He does this Monday through Friday, starting at 7:00 a.m., to respond to questions about the progress of his administration, announce projects, hear criticism of government policies and communicate his opinion on the issues present in national politics. The meetings always last more than an hour and begin with a military greeting from a female soldier who exclaims: “Good morning, Mr. President!” Then the president makes his entrance to announce the theme or topic of the day. The president stands during the press conference and is accompanied by officials from his government, who occasionally … read more

Economic Indicators

On October 9, 2019, updated financial indicators reflected:

Peso/Dollar Exchange Rate: $19.5689 pesos per Dollar.

Mexican Stock Exchange: The Mexican Stock Exchange (BMV) closed at 42,466.05 points.

Interest Rates: The Average Interbank Rate (TIIE) for a 28-day period was at 8.0050%

Calculating Overtime Pay in Mexico

The Ninth Collegiate Tribunal of the First Circuit for Labor Matters recently published opinion number I.9o.T.67 L (10th), entitled: “Overtime. Time which an employee, on his/her own initiative, spends preparing to perform work, commuting to the workplace, or performing any other activity in order to be able to render services, shall not be considered overtime, unless such has been agreed to by the employer.”  In its opinion, the Court concluded that the time spent by an employee “in preparing to perform work, commuting to the workplace, or performing any other activity in order to be able to render services,” without the employee being subject to the employer’s control, may not be considered overtime under Mexican labor law, and that to … read more

New Regulations to Protect Domestic Employees
By Pablo Sáenz and Fernanda Magallanes

On July 2nd, 2019 Mexico’s Federal Labor Law (the “FLL”) and Social Security Law (the “SSL”) were amended to include provisions designed to protect domestic employees working in Mexico.  The most relevant aspects of the amendments are summarized below: The FLL defines domestic employees as those who provide care services, cleaning, assistance or any other activity within an employer’s residence, and such arrangement does not produce a financial benefit to the employer.  Domestic employees may reside inside or out of the employer’s home, or they may work for different employers and not reside at any of them. Individuals who perform household work on an occasional or sporadic basis or who provide cleaning services, assistance, customer service and other similar activities … read more

There Is, In Fact, Life After Mexico’s Electricity Auctions
By José María Lujambio

At the end of January of this year, Mexico’s National Energy Control Center (“CENACE” for its acronym in Spanish) decided to cancel the fourth long-term auction that would have allowed CFE Basic Services Suppliers and other interested suppliers to acquire electricity, capacity and clean energy certificates (“CEL,” for its acronym in Spanish) at the wholesale level. This decision hit the national energy sector, particularly those companies that develop power plants, like a bucket of cold water.   The decision was directed by the Secretary of Energy and motivated by the current prevailing ideological rejection by the new Mexican federal administration of the generation of electricity by private companies, particularly foreign companies. It did not matter that the Electric Industry Law … read more