FEDERAL AGENCY FOR LABOR DEFENSE

1. SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL ADVISORY MECHANISMS & WORKERS’ REPRESENTATION AND UNIONS AT THE PROFEDET FEDERAL AGENCY FOR LABOR DEFENSE

2. SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL FEDERAL AGENCY FOR LABOR DEFENSE 7 CREATION OF THE PROFEDET AGREEMENT OF THE COMMERCE, INDUSTRY AND LABOR MINISTRIES LEY LEY 1 2 1929 1931 1970 1975 1999 14 1933 18 11 SEPTEMBER MARCH AUGUST MAY JUNE DECEMBER FEDERAL LABOR LAW FEDERAL LABOR LAW REGULATIONS REGULATIONS REGULATIONS TITLE XI PROFEDET LABOR AUTHORITY TITLE VIII PROFEDET 1. REPRESENT OR COUNSEL ON DIFFERENCES AND CONFLICTS ON LABOR CONTRACTS 2. PROPOSE AMICABLE SOLUTIONS 1. APPLICATION OF ENFORCEMENT MEASURES 1. DECENTRALIZED BODY FROM STPS ARTS. 334 SECT. III FUNCTIONS: ARTS. 530-536 BROADENING OF FUNCTIONS: 2. CREATION OF THE TECHNICAL ADVISORY COMMITTEE 2. CONCILIATORY FUNCTION HISTORY-LEGAL FRAMEWORK

3. Legal Framework • In Mexico, the application of labor regulations corresponds to the local and federal authorities, as established by the Constitutional article 123 in its Section “A”, fraction XXXI & 527, 528, & 529 of the Federal Labor Law. • Given the PROFEDET is a Labor authority, in accordance with article 523 of the Federal Labor Law, it has jurisdiction over the application of the labor regulations of federal competence, according with Article 123, Section “A”, fraction XXXI, & Article 527 of the cited Law. • On its part, the Enforcement of Labor Justice has its basis on the Federal Labor Law, in Chapter III, Title XI, (Art. 530-536) in which it establishes that the Agency for Labor Defense, through its attorney generals, advises and represents the workers that request the services of the Agency for Labor Defense, free of charge. • The service is offered to those workers and their unions that request it.

4. SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL FEDERAL AGENCY FOR LABOR DEFENSE 1. COUNSEL OR REPRESENTATION OF THE WORKER, BENEFICIARIES OR THEIR UNION 4. OVERSEE THAT JUSTICE ADMINISTRATION IS PROMPT AND EXPEDITE 2. FILE RESOURCES IN DEFENSE OF THE WORKERS 3. PROPOSE AMICABLE SOLUTIONS OBJECTIVES LEGAL NATURE COMPETENCE CONCILIATION ADVICE REPRESENTACTION OBJECTIVES, NATURE AND COMPETENCE 1. DECENTRALIZED BODY OF THE STPS 2. WORKERS’ REPRESENTATIVE AND GOVERNING BODY 1. WORKING POPULATION AND BENEFICIARIES 2. MATTERS OF FEDERAL COMPETENCE (FRAC. XXXI SECTION A, ART. 123) FREE SERVICES

5. What is the role of the PROFEDET within the labor community? • It is a decentralized body of STPS with technical and administrative autonomy. • All its services are free of charge. • Founded in 1929. • In charge of complying at a Federal level, the functions conferred by the Federal Labor Law, the Internal Regulations of the Secretary and the Regulations • Guides and counsels the workers, its beneficiaries and unions on the rights and obligations derived from the labor and social welfare norms, as well as the procedures and competent bodies available to assert them; it also receives the complaints about non-compliance and violations of the labor and social welfare regulations from the users, summons the actors of the production to reach conciliatory solutions for the conflicts they face, and represents the target population, when they request it at the jurisdictional, administrative bodies, and any other public or private institution, to enforce the actions and resources which correspond with the ordinary way, special even at the appeal trial, until its absolute closing; • 460 people collaborate, located in central offices (72%) and in forty eight representative offices ( 28%). • The decentralized body has structure, plans, programs, objectives, and indicators to develop their mission and to establish congruence with the desired position in the future, considering the current referrals of austerity, reasoning and budget discipline.

6. What are its faculties? The current rules, apart from other regulations, establish amongst the PROFEDET attributions, the following: Guide and counsel the workers, its unions, or beneficiaries about the rights and obligations derived from the labor and social welfare laws, as well as the procedures and competent bodies available to assert them; To perform the planning, programming, organization, guidance control and assessment of its activities, in accordance with the applicable legal norms and regulations issued by the Secretary To propose the interested parties amicable solutions to settle their conflicts, through the signing of agreements out of trials and making them stand in authorized reports;

7. To receive from workers, their unions or beneficiaries, the complaints on non-compliance and violations of the labor and social welfare regulations, and in the event, to summon the employers or unions to state their best interest, with warning that in the event of failure to appear, it will be applied, as a coercive measure, a fine up to one hundred times the general daily minimum wage and at the time and place of the non-compliance; To formulate the corresponding filings to the competent authorities for the non-compliance and violation of the labor and social welfare regulations and with the public prosecutor, the facts that allegedly constitute penal wrongful acts; To represent the workers, their unions of beneficiaries, when requested, at the jurisdictional, administrative bodies and any other public or private institution, to enforce the actions and resources that correspond in the ordinary way, special, even at the appeal trial, up to its absolute closing; To coordinate the actions of the Agency with the Labor Defense Agencies from the federation entities, in order to establish common criteria for the better compliance of the responsibilities conferred to them by Law; To administrate its own accounting; to make, analyze and consolidate its financial statements, as well as to provide the Secretary with the requested information and documentation, and The others conferred by the legal, regulated and administrative ordainments. The services provided by the Agency to workers, their unions or beneficiaries will be free of charge, except for the exceptions cases established by Law, by request from the part.

8. Mission, Vision and Objective MISSION • To provide, free of charge, the services of counseling, conciliation and legal representation through a professional, honest and efficient service, promoting the prevention culture, privileging the conciliation as a way of expedite solution of the conflicts, and when necessary, the representation of the workers, beneficiaries and their unions, at the labor tribunals. VISION • To be the federal government’s instance appropriately positioned at the society and acknowledged by its impartiality and adherence to the law in matters of providing legal justice, with a capacity to transform for the effective defense of labor. INSTITUTIONAL OBJECTIVE • To provide labor justice in defense of workers in a free, expedite, honest and warm manner.

9. FEDERAL AGENCY FOR LABOR DEFENSE SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL ORGANIZATIONAL CHART FEDERAL AGENCY COUNSEL AND TECHNICAL SUPPORT ASSISTANT GENERAL AGENCY CONCILIATION AND DEFENSE ASSISTANT GENERAL AGENCY FOREIGN AFFAIRS ASSISTANT GENERAL AGENCY ADMINISTRATIVE GENERAL SECRETARY DIRECTORATE OF LEGAL REPRESENTATION DIRECTORATE OF COUNSEL AND BONDING DIRECTORATE OF CONSULTATION AND TECHNICAL SUPPORT DIRECTORATE OF HUMAN RESOURCES DIRECTORATE OF PLANNING DIRECTORATE OF RESOURCES AND APPEALS DIRECTORATE OF MATERIAL RESOURCES AND GENERAL SERVICES DIRECTORATE OF PROCESS CONTROL NORTH ZONE DIRECTORATE OF PROCESS CONTROL CENTER ZONE DIRECTORATE OF PROCESS CONTROL SOUTH ZONE 48 FEDERAL AGENCIES AND AUXILIARIES

10. 47 25 FEDERAL AGENCY FOR LABOR DEFENSE 16 45 4 SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL 20 13 19 46 40 26 34 11 22 15 23 7 36 35 2 5 31 24 37 18 33 17 3 30 27 38 21 39 6 9 12 42 32 10 29 NORTHERN ZONE 16 44 8 43 14 28 1 41 CENTRAL ZONE 17 SOUTHERN ZONE 15 10 48 FEDERAL AGENCIES AND AUXILIARIES 48 48 TOTAL

11. What is the coverage of the services?

12. Companies

13. FEDERAL AGENCY FOR LABOR DEFENSE SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL LEGAL ADVICE 1. IDENTIFY THE APPLICANT WORKER (INTERESTED) BENEFICIARY UNION REPRESENTATIVE 2. LOCATE THE CONSULTATION INDUSTRIAL BRANCH COMPANY BODY INFORMS 3. DEFINE THE PROFILE PROBLEMS ISSUES PREVIOUS ORIENTATION TURNS DETECT HIDDEN INFO. PERSONALITY 4. APPLY THE TECHNIQUES AND/OR STRATEGIES QUESTIONING INTERVIEW COMMENTS LABOR LAW 5. DEFINE THE TYPE OF PROBLEM SOCIAL SECURITY OTHERS: FISCAL, PENAL, CIVIL. OBJECTIVES DECISION MAKING M E T H O D FEDERAL COMPETENCE LOCAL COMPETENCE 1. PREVENTION 2. GUIDE LEGAL ACTION TO EXECUTE (APPLICABLE ARTICLES) 3. COUNSEL PRIORITIES ISSUES INFORMS

14. SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL CONCILIATORY FUNCTION FORMALIZATION OF THE CONCILIATION MINUTE OR AGREEMENT LOCATE THE PARTS IN CONFLICT WORKER’S ORIENTATION INTERVIEW ROGATORY TO DETERMINE CONTROVERSY ATTORNEY GENERAL PROGRAM WITH ANTICIPATION (PREVENT) CONCILIATION TABLE PROPOSALS OF ALTERNATIVES FOR SOLUTIONS TO SATISFY BOTH PARTIES WORKER YES CREATE CLIMATE OF CONFIDENCE AND RESPECT ATTORNEY GENERAL ANALYSIS OF THE CONFLICT NO EMPLOYER NEGOTIATION WITH THE EMPLOYER (REPRESENTATIVE) COMMUNICATION BRIDGE BY REQUEST OF INTERESTED, PREPARES LAWSUIT LOCATE THE PARTS IN CONFLICT ROGATORY TO DETERMINE CONTROVERSY IDEAL MEANS TO SOLVE LABOR CONFLICTS, MITIGATING EXPENSES, TIME AND LEGAL RISKS CONCILIATION: FEDERAL AGENCY FOR LABOR DEFENSE

15. SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL PUBLIC ADVOCACY: PROCESS OR O LITIGATION FEDERATION JUDICIAL BRANCH LAWSUIT FOLLOW UP FOLLOW UP ATTORNEY GENERAL COLLEGIATE TRIBUNAL WORKER’S LEGAL REPRESENTATIVE 1. APPROACH IN FAVOR OF WORKER 2. OVERRULED VIOLATIONS ANALYSES APPLICABILITY OF ACTION APPEAL FILING CONCILIATION AND ARBITRATION FEDERAL BOARD 1. EVIDENCE HEARINGS AGAINST THE WORKER 2. PRESENTING HEARINGS AWARD FEDERAL AGENCY FOR LABOR DEFENSE 1. ANALYSES POWERS OF DEFENDANT 1. PREFACE ENFORCEMENT PROCEDURE OR FORECLOSURE 2. BENEFITS 2. PREPARES EVIDENCE 3. FACTS 3. MAKES OBJECTIONS 4. LAW 5. PETITION ITEMS 4. PRESENTS EVIDENCE 6. CASE LAW

16. PROFILE OF THE ATTORNEY GENERAL FOR LABOR DEFENSE SECRETARÍA DEL TRABAJO Y PREVISIÓN SOCIAL 5. PUBLIC WORKER 1. EXPERT IN LAW LEY 6. ASSIST. OF LABOR COURTS 2. ADVISOR 7. LABOR AUTHORITY 8. REPRESENTATIVE PROFEDET 3. CONCILIATOR 9. TEAMWORK COLLEAGE 4. LITIGANT 1O. PROTAGONIST NEW LABOR CULTURE STPS 11. PART OF THE LABOR SECTOR

17. OFFERED SERVICES DECEMBER 2006 – NOVEMBER 2008 SIMPLE ADVICE 10,976 FILES 8,807 OPINIONS 764 CANALIZATION LETTERS 10,636 VERBAL COUNSEL 26,787 E-MAIL 4,792 TEL. ADVICE 59,659 STATE CONSULT. 9,445 GRAND TOTAL 131,866