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Author: Subject: Mexican Labor Laws--
JESSE
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[*] posted on 7-29-2009 at 04:01 PM


Quote:
Originally posted by Dave
Quote:
Originally posted by JESSE

They can collect the equipment in your business.


I don't own it. Owned by a separate corporation that leases to me.


Isnt spending the next 2 years fighting to get the equipment back from them, the same as losing it?




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Dave
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[*] posted on 7-29-2009 at 04:16 PM
They wouldn't get out the door with it


Quote:
Originally posted by JESSE

Isnt spending the next 2 years fighting to get the equipment back from them, the same as losing it?


They can only take listed assets owned by the owner/business. I have a friend who's been through the process.

The only thing I own is a lease. They're welcome to it.




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JESSE
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[*] posted on 7-29-2009 at 04:22 PM


Quote:
Originally posted by Dave
Quote:
Originally posted by JESSE

Isnt spending the next 2 years fighting to get the equipment back from them, the same as losing it?


They can only take listed assets owned by the owner/business. I have a friend who's been through the process.

The only thing I own is a lease. They're welcome to it.


Its not about who takes what, its about them not letting you or anybody take anything from the property, they can drag this process for ever and not even the Coca Cola guys will be able to get their refrigerators back until its over.




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Dave
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[*] posted on 7-29-2009 at 04:56 PM
OK, let me rephrase


Quote:
Originally posted by JESSE

Its not about who takes what, its about them not letting you or anybody take anything from the property, they can drag this process for ever and not even the Coca Cola guys will be able to get their refrigerators back until its over.


No authority can place a lien or take property that you or your business doesn't own to satisfy a judgment. Don't doubt that they can try but a good attorney will shut it down. Seen it happen.

And, not that I have any but why would I care if Coke ever got its equipment back?




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JESSE
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[*] posted on 7-29-2009 at 05:47 PM


Quote:
Originally posted by Dave
Quote:
Originally posted by JESSE

Its not about who takes what, its about them not letting you or anybody take anything from the property, they can drag this process for ever and not even the Coca Cola guys will be able to get their refrigerators back until its over.


No authority can place a lien or take property that you or your business doesn't own to satisfy a judgment. Don't doubt that they can try but a good attorney will shut it down. Seen it happen.

And, not that I have any but why would I care if Coke ever got its equipment back?


Never in my career, have i ever seen anybody, and i mean, even large corporations, being able to get anything out of a building where there was labor problems.

Lets agree to disagree.




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MitchMan
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[*] posted on 7-29-2009 at 05:58 PM


I wonder if the reason Los Arcos hotel in La Paz is shut down is because of a stupid labor issue relating to one or two disgruntled employees who made a claim?
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DENNIS
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[*] posted on 7-29-2009 at 06:08 PM


Quote:
Originally posted by MitchMan
I wonder if the reason Los Arcos hotel in La Paz is shut down is because of a stupid labor issue relating to one or two disgruntled employees who made a claim?



Are people camped out in front of the door under large red and black banners?
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Dave
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[*] posted on 7-29-2009 at 06:10 PM
Are we talking about seperate issues?


Quote:
Originally posted by JESSE

Never in my career, have i ever seen anybody, and i mean, even large corporations, being able to get anything out of a building where there was labor problems.

Lets agree to disagree.


I'm talking about a disgruntled employee. Aren't you talking about unions?




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JESSE
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[*] posted on 7-29-2009 at 06:11 PM


Quote:
Originally posted by DENNIS
Quote:
Originally posted by MitchMan
I wonder if the reason Los Arcos hotel in La Paz is shut down is because of a stupid labor issue relating to one or two disgruntled employees who made a claim?



Are people camped out in front of the door under large red and black banners?


Yes. Somebody tried to get in a few months ago, and in just a few minutes, you had Wrestlemania 10 in front of the Hotel.




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monoloco
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[*] posted on 7-29-2009 at 06:12 PM


i think that the bottom line is that Mexican labor law stifles economic growth in Mexico. Maybe this is good for keeping Baja from becoming over developed but I suspect it's not good for the people who make their livings here.
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MitchMan
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[*] posted on 7-29-2009 at 06:15 PM


Dennis,
Several months ago I think that there were people out front, I don't remember reading banners in front, but I do believe there were some banners of some sort. Lately, I don't think there is anyone hanging around in front, but I only drove by quickly a few times in the last month. What do the banners typically indicate?
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DENNIS
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[*] posted on 7-29-2009 at 06:21 PM


I remember what I think was a labor dispute at La Fonda / La Misión. They occupied the entrance, more perhaps, for what seemed like years. Black and Red banners , Huelga/Strike, all over the place.
Don't know the details but, when it was all settled, the property was split up.
I'm not sure about the details. Maybe Dave can fill us in. It was in his territory up there.
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Dave
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[*] posted on 7-29-2009 at 06:36 PM


Quote:
Originally posted by DENNIS
I remember what I think was a labor dispute at La Fonda / La Misión. They occupied the entrance, more perhaps, for what seemed like years. Black and Red banners , Huelga/Strike, all over the place.
Don't know the details but, when it was all settled, the property was split up.
I'm not sure about the details. Maybe Dave can fill us in. It was in his territory up there.


Long story short...Joe had a labor union than was killing him. They demanded higher wages. Went on strike and black flagged the place. Joe got permits and licenses and was in back business in his home in two weeks. Basically said picket all you want the old place ain't gonna reopen. They were gone in a few weeks.




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flyfishinPam
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[*] posted on 7-29-2009 at 06:45 PM


Quote:
Originally posted by Dave
Quote:
Originally posted by JESSE

Isnt spending the next 2 years fighting to get the equipment back from them, the same as losing it?


They can only take listed assets owned by the owner/business. I have a friend who's been through the process.

The only thing I own is a lease. They're welcome to it.


well perhaps that's the way it worked in Rosarito but in other places not so. in my case both my company and me were named in the suit. they tried to take my house away and other things but to make a long story short these things they tried to take were not in my name. once the judgement is against you they can take three times worth of assets away until you pay up. I ended up settling out of court just to end it, it wasn't worth the fight. for a thousand dollars or so I'd rather just pay, or better yet avoid the situation in the first place such as ways that Jesse explained. Dave I understand you closed your business? maybe the way things were when you were running your business a couple of years ago changed? also those lawyers always tell you what you want to hear, you're protected, you'll win, etc ad nauseum but they do that to keep your encouragement up so youkeep fighting and keep paying them.




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DENNIS
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[*] posted on 7-29-2009 at 06:46 PM


Quote:
Originally posted by Dave
They were gone in a few weeks.



A few weeks? Seems like they camped out there forever. Every time I'd go to the states, they were still there. Seemed like a year or more.
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monoloco
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[*] posted on 7-29-2009 at 07:05 PM


Another thing to remember is Mexican court cases can take years, I have been involved in one for 3 years with no end in sight. Take my word for it, it's not worth it. Avoid the Mexican legal system at all costs, the only winners are the lawyers.
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Dave
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[*] posted on 7-29-2009 at 07:26 PM


Quote:
Originally posted by DENNIS
Quote:
Originally posted by Dave
They were gone in a few weeks.



A few weeks? Seems like they camped out there forever. Every time I'd go to the states, they were still there. Seemed like a year or more.


There were maybe one/two guys there for months. A token appearance. The main strike lasted for less than a month. It didn't matter. The restaurant was permanently closed. Joe sold the entire property a few years later.

Pam, we sold the deli location several years ago. For a while I coasted but got back in business in a big way about 10 months ago. Have a bar/restaurant in Puerto Nuevo. Also starting an unrelated franchise operation. I'm very familiar with Mexican labor law as my corporate attorney and accountant are specialists in the field.

I would never advise operating in Mexico unless one has intimate knowledge of corporate and labor laws...and how to use them to your advantage.




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[*] posted on 7-29-2009 at 07:50 PM


This has been a very interesting thread. Maybe we should have one called "doing business in Mexico". Then people would know of legit lawyers and practices.
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DENNIS
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[*] posted on 7-30-2009 at 04:58 AM


Quote:
Originally posted by bajaeng

That amount is in dollars at yesterday's exchange rate. Upon termination, have to pay 3 months salary, unused vacation, some profit sharing, prorated christmas bonus, and another load based on number of years of service.


I don't know what to say. I had no idea the structure was so...punative. You don't merely hire somebody....it's more like taking on a partner.
I would be curious to know how much of this nonsense has been negotiated away by the Maquiladoras. I can't imagine big business volunteering for this abuse.

And to think, on top of all this government control, there are unions to deal with.
A third world country is it's own biggest enemy.
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DENNIS
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[*] posted on 7-30-2009 at 07:53 AM


Here's some legal sounding info on the subject:
------------------------

http://www.fredlaw.com/articles/international/Mexico.pdf
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