Employment Discrimination

1. Employment Discrimination In the Mexican Work Environment

2. Content • Background • Applicable Legislation • The Federal Law to Prevent and Eliminate Discrimination • Definitions and Enforcement III. Cases of Employment Discrimination • Handicapped • Sexual Orientation • Elder Population • Gender Based • Central Americans in the South of Mexico • Education • IV. The CONAPRED • V. What is Next For CONAPRED?

3. Background • Discrimination -> a historical phenomena: “The situation in which, for prejudice, one person or group of people suffer an unfavorable treatment, generally for belonging to an specific social category”. • Mexico continues to have poverty and unequal wealth distribution to a greater extent than its corresponding level of development. • First national survey of discrimination in Mexico in May 2005, by the Consejo Nacional para Prevenir la Discriminación (CONAPRED). 1

4. Employment Discrimination in México Results according to the CONAPRED survey: 2

5. Background • The main aspects that cause employment discrimination are: • Employers do not recognize discrimination practices. • Legal framework and its enforceability does not deter exclusion. • Lack of effective social programs and educational systems. • Lack of mechanisms to reduce discrimination in the labor market. • Unequal access to the labor market results in uneven income opportunities • Discrimination begins early in school followed by employment. • Marital status, gender and physical appearance are limitations of access the labor market. • Almost 40% of disabled people receive lower salary for a similar job. 3

6. Applicable Legislation • Federal Law to Prevent and Eliminate Discrimination, published in 2003. • The State is responsible for creating conditions that foster the rights and liberties consecrated in the Mexican Constitution: • Art 1. All persons shall enjoy the same rights under the Constitution, which are not to be restricted or suspended except as indicated otherwise… • Art 5. No person shall be impeded from working in the profession, industry or trade of his/her preference, provided the activity is considered legal. Compensation shall be fair and consented to by the individuals…

7. Legal Definitions • Federal Law to Prevent and Eliminate Discrimination defines discrimination as follows: “Any and all distinction, exclusion or restriction based on ethnic, national, gender, age, disabilities, social or economic conditions, pregnancy, language, opinions, sexual orientation, religion, civil status or other, which impedes recognition or exercise of egalitarian rights among people.” • It is not considered as discrimination when: • Establishing special treatments to achieve equal opportunity. • Hiring based on special skills. • Awarding an academic degree based on certain criteria. • Hiring civil servants only if they meet certain standards. • Offering social security services only to beneficiaries. • Differentiating citizens from non-citizens. • Treating the mentally-ill with special care. 5

8. Enforcement • The Law fosters equal rights on health, education and legal/economic support to women, children, senior citizens (over 60 years old) and indigenous population. • Enforcement of the law is facilitated by the CONAPRED, an entity that belongs to the ministry of the interior (SEGOB). • CONAPRED may initiate investigations upon request of the plaintiff or, in some instances, unsolicited. • CONAPRED acts as mediator between plaintiff and defendant, and can provide legal advice to plaintiffs when legal actions are necessary. • CONAPRED may impose administrative penalties. 6

9. Cases of Discrimination – Sexual Orientation Coca-Cola Femsa´s Case Facts: • On May 2nd 2005, Roberto Mendoza filed at CONAPRED claiming to be a victim of discriminatory practices for his sexual preferences, accusing Coca Cola Femsa’s HR Manager and 3 directors. • Argument: he was twice denied promotions and had been constantly harassed until he was forced to resign on October 15, 2004. • Prior to his resignation, he was relocated from Costa Rica to Mexico. Upon arrival, the HR manager changed the offer from 117,000 MXP per month to 60,000 MXP. 7

10. Cases of Discrimination – Sexual Orientation Coca-Cola FEMSA Case Outcome: • On May 13, 2005, CONAPRED qualified the matter as an alleged discrimination case. • The defendant replied to CONAPRED’s notice by: • Denying that Roberto had worked there. • Arguing that Roberto had left by mutual consent and denying all accusations. • The case was presented to CONAPRED and could not proceed further as one of the parties had denied to attend the conciliatory process. • Roberto seeks that Coca Cola FEMSA implements the non-discriminatory policies of the Coca Cola Co. to make sure this never happens again. 8

11. Cases – Gender and Age Based 12 9

12. Cases of Discrimination – Gender Based Women in the “Maquila” Industry • The maquila industry provides 500,000 jobs in Mexico; ~ 50% are women. • Women are subject to various forms of discrimination: • Sexual harassment • Job denial based on pregnancy status. • Sexual favors are sometimes a condition to access to job opportunities. • They are subject to pregnancy tests upon hiring and monthly after. Maternity leave costs are high to companies under Mexican legislation. • Pregnancy in the first months could have the employee reassigned to hard activities, overtime or being fired. 10

13. Cases of Discrimination – Gender Based Women in the “Maquila” Industry • Women do not protest against these practices because: • Maquilas offer good opportunities, generally unmatched by other industries • Women ignore the legal provisions that protect them. • Some companies where this behavior has been identified: Sunbeam-Oster, Panasonic, Zenith, Siemens, Bell, Sanyo, Samsung, etc. • According to the INEGI, women are paid on average 0.5% - 56% less than men in similar positions. • Professionals 23.6% • Craft labor: 36.2% • Public officials: 19.3% • Commerce: 17.0% 11

14. Cases of Discrimination – Other 12

15. What’s Next for CONAPRED ? • CONAPRED jointly with the CNDH are starting to play an active role against discriminative acts made by employers and the society in general • HIV • Jewish Community

16. What’s Next for CONAPRED ? • Encourage and motivate institutions and companies to instill non-discrimination policies and measures that match the specific needs of every group subject to discrimination. • Implement a new and easy process to help people to denounce discrimination acts. • Improve enforcement of the law. • Encourage legislators to pass laws and regulations that eliminate existing unfair standards, especially gender-wise. • Gain credibility about the genuine interest in non-discrimination as a culture, not a political flag.

17. “We should be clear that the only thing in which we are all equal is in that we are all different from each other” Mr. Gilberto Rincón Gallardo QUESTIONS ?

18. Back-Up

19. Summary • Handicapped • Work places not equipped to employ disabled people. • Sexual Orientation • Most companies question marital or relationship in work interviews. • Elder Population • Some companies do not hire people older than an age range. • Gender Based • It is proven that women earn less money in equal jobs than men. • Mandatory non-pregnancy test before hiring. • Central Americans in the south of Mexico • Illegal wages • No legal benefits • Education • Some companies only hire alumni from certain private or prestigious schools and universities.