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Puerto Vallarta News NetworkBusiness News | February 2009 

Local Labor Problems Result in Lawsuits
email this pageprint this pageemail usTribuna de la Bahía

The worker has the right to file a lawsuit against the company that fires him and the Conciliation Board endorses their commitment to conciliate.
- Agustin Ortiz
According to Agustin Ortiz, President of the Conciliation and Arbitration Board, there has been a significant increase in the labor problems reported in Puerto Vallarta this year as compared to last year.

Comparing the number of complaints to 2008, this year the Conciliation and Arbitration Board has received over 100% more lawsuits.

The increase in the labor problems reported is due to the unfair dismissal that so many people in town have suffered. In addition, some local companies have been forced to cut back on the number of days their employees work, as well as the pantry vouchers and transportation assistance that were previously provided to workers.

The difference is not only being felt by the workers themselves, but is also affecting the overall income of local families.

Which brings us to another aspect of this problem - an almost 300% increase in the number of minors who are applying for work certification this year. This means that families are seeking assistance from all the members of the family to help provide the necessary means to assure their income and household expenses, even if some of them are still attending high school.

There are certain advantages in obtaining this certification, one being Social Security. Also, they can start building good credit reports and securing their futures through the retirement savings fund program that is available to all Mexican workers. These advantages cannot be obtained by minors that have not been approved or have not applied for work permits.

There are certain areas where a minor cannot work, such as construction sites, any position where the employee is to handle chemicals and gas stations, but they can obtain a permit to work in a food and beverage position, front desks, department stores, administrative offices and other areas where their personal security is not at risk.

Due to so many minors being listed on the payrolls of several different hotels and restaurants in town, Agustin Ortiz emphasized that many agreements have been made by employers, especially in conciliation matters, in order to assure that no employees will be fired. Their response was that only the working people in town could receive less hours since the Hotel and Restaurant Association has experienced a huge reduction in the demand for their services.

Ortiz stressed that the worker has the right to file a lawsuit against the company that fires him and the Conciliation Board endorses their commitment to conciliate.

Reportedly, there are several local companies taking advantage of the present economic crisis by unreasonably firing employees and/or withholding employees' basic benefits like Social Security.

Fifty companies have been fined for several different complaints over the last couple of months for having workers without social security on their payrolls. The fines range from fifteen to thirty thousand pesos.

Translated by Salvador Murguia for PVNN



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