1. TECHNICAL ASSISTENCE FOR REGULATORY COMPLIANCE Automotive industry Secretariat of Labor and Social Welfare. Undersecretariat of Social Welfare Department of Occupational Health and Safety Seminar on best practices in the manufacturing sector Mexico City June 16 and 17, 2003

2. TECHNICAL ASSISTANCE NEW WORKPLACE CULTURE REGULATORY COMPLIANCE SASST STRATEGY SELECTION OF COMPANIES COORDINATION AND PROMOTION TRAINING AUTHORIZATION AND VALIDATION OF CV ASSESSMENT CERTIFICATION AND/OR ACCREDITATION BY OCCUPATIONAL SAFETY AND HEALTH MGMT. SYSTEMS (SASST) SUSTAINED IMPROVEMENT

3. VISION HAVE EXCELLENT COMPANIES  COMMITTED TO QUALITY OF:  WORKERS  OCCUPATIONAL HEALTH AND SAFETY  THE ENVIRONMENT

4. WORK-RELATED ACCIDENTS PER 100 WORKERS 1986 - 2001 SOURCE: MEXICAN SOCIAL SECURITY INSTITUTE (IMSS)

5. INSTANCES OF PERMANENT DISABILITY PER 100 WORK-RELATED ACCIDENTS 1986 - 2001 SOURCE: MEXICAN SOCIAL SECURITY INSTITUTE (IMSS)

6. DEATHS PER 1000 WORKPLACE ACCIDENTS 1986 - 2001 SOURCE: MEXICAN SOCIAL SECURITY INSTITUTE (IMSS)

7. Cost Direct cost:$23,900.00 Indirect cost:$119,500.00* Total:$143,400.00 Workers’ Comp. Claims Cost per case Source: Mex. Social Security Inst. (IMSS).- Budget, Accounting and Financial Analysis Office.- Balance Sheet for Insurance Section. *According to the ILO, the indirect costs are 5 times the direct costs.

8. Cost Direct cost:$23,900.00 Indirect cost :$119,500.00* Total:$143,400.00 Total Workers’ Comp. Claims: 454,089 Total Cost :$65,116,362,600.00 Workers’ Comp. Claims Cost per case Source: Mex. Social Security Inst. (IMSS).- Budget, Accounting and Financial Analysis Office.- Balance Sheet for Insurance Section. *According to the ILO, the indirect costs are 5 times the direct costs.

9. MANAGING OCCUPATIONAL HEALTH AND SAFETY ( GSST ) MODEL MANAGING OCCUPATIONAL HEALTH AND SAFETY

10. Campaign: Employers and workers responsible for occupational health and safety Self-management of occupational health and safety

11. GSSTObjectives Include health and safety in companies’ overall management. Encourage companies to comply with occupational health and safety standards. SELF-MANAGEMENT

12. Guarantee a working environment that allows for company efficiency and competitiveness. Encourage an inclusive attitude among management and workers in analyzing the problems concerning workers’ compensation claims. Establish a process by which STPS certifies companies as safe, hygienic workplaces. GSST Benefits

13. Management of occupational health and safety OPERATING PLAN

14. PLANNING SELECTION OF COMPANIES COORDINATING COORDINATING AGREEMENTS OPERATING PROCESS

15. PLANNING SELECTION OF COMPANIES COORDINATING COORDINATING AGREEMENTS AWARENESS- PROMOTING EVENTS INITIAL ASSESSMENT WORKSHOP DRAFTING OF INITIAL ASSESSMENT, PSST, AND VOLUNTARY COMMITMENT SAFETY AND HEALTH COMMITTEES WORKSHOP TRAINING OPERATING PROCESS

16. PLANNING SELECTION OF COMPANIES COORDINATING COORDINATING AGREEMENTS AWARENESS- PROMOTING EVENTS INITIAL ASSESSMENT WORKSHOP DRAFTING OF INITIAL ASSESSMENT, PSST, AND VOLUNTARY COMMITMENT SAFETY AND HEALTH COMMITTEES WORKSHOP TRAINING EXECUTION AND ADVISORY ASSISTANCE ANALYSIS OF INITIAL ASSESSMENT, PSST, AND VOLUNTARY COMMITMENT AUTHORIZATION OF VOLUNTARY COMMITMENT PSST DEVELOPMENT AND SASST IMPLEMENTATION PSST DEVELOPMENT AND SASST IMPLEMENTATION OPERATING PROCESS

17. ASSESSMENT OF SASST, REGULATIONS AND CLAIMS HISTORY (Total) ASSESSMENT OF SASST, REGULATIONS AND CLAIMS HISTORY (Total) PLANNING SELECTION OF COMPANIES COORDINATING COORDINATING AGREEMENTS AWARENESS- PROMOTING EVENTS INITIAL ASSESSMENT WORKSHOP DRAFTING OF INTIAL ASSESSMENT, PSST, AND VOLUNTARY COMMITMENT SAFETY AND HEALTH COMMITTES WORKSHOP TRAINING FORMALIZATION AND ADVISORY SERVICES ANALYSIS OF INTIAL ASSESSMENT, PSST, AND VOLUNTARY COMMITMENT AUTHORIZATION OF VOLUNTARY COMMITMENT PSST DEVELOPMENT AND SASST IMPLEMENTATION PSST DEVELOPMENT AND SASST IMPLEMENTATION ASSESSMENT ASSESSMENT OF THE PSST AND HEALTH AND SAFETY REGULATIONS (Partial) UPDATE OF INITIAL ASSESSMENT AND PSST (Technical Assistance) UPDATE OF INITIAL ASSESSMENT AND PSST (Technical Assistance) A OPERATING PROCESS APPLICATION FOR ACCREDITATION Mex. Social Security Inst.

18. MANAGEMENT AND COMPLIANCE Acknowledgement MANAGEMENT AND COMPLIANCE Acknowledgement ACKNOWLEDGEMENTS E- 3 ASST Acknowledgement PSST DEVELOPMENT AND FOLLOW-UP PSST DEVELOPMENT AND FOLLOW-UP OVERALL ASSESSMENT OF SASST E- 2 E- 1 A UPDATE OF INITIAL ASSESSMENT SUSTAINED IMPROVEMENT Acknowledgement PSST DEVELOPMENT AND FOLLOW-UP OVERALL ASSESSMENT OF SASST UPDATE OF INITIAL ASSESSMENT OPERATING PROCESS.-Cont. Mex. Social Security Inst (IMSS) ACCREDITATION

19. BI-ANNUAL REPORT ON WORK-RELATED ACCIDENTS AND ILLNESSES ACKNOWLEDGEMENT VALIDATION MANAGEMENT AND COMPLIANCE Acknowledgement SASST.- OCCUPATIONAL HEALTH AND SAFETY ADMINISTRATION SYSTEM. PSST.- OCCUPATIONAL HEALTH AND SAFETY PROGRAM. P.- PHASE ACKNOWLEDGEMENTS P- 3 ASST Acknowledgement ASST Acknowledgement PSST DEVELOPMENT AND FOLLOW-UP OVERALL ASSESSMENT OF SASST P- 2 P- 1 FOLLOW-UP SASST ASSESSMENT SASST ASSESSMENT PASST UPDATE AND FOLLOW-UP PASST UPDATE AND FOLLOW-UP TRIENNIAL UPDATE OF SASST INITIAL ASSESSMENT ANNUAL UPDATE OF INITIAL REGULATORY ASSESSMENT A UPDATE OF THE INITIAL ASSESSMENT SUSTAINED IMPROVEMENT Acknowledgement SUSTAINED IMPROVEMENT Acknowledgement PSST DEVELOPMENT AND FOLLOW-UP OVERALL ASSESSMENT OF SASST UPDATE OF INITIAL ASSESSMENT OPERATING PROCESS.-Cont.

20. Phase One. Technical Assistance Acknowledgments For management and compliance with occupational health and safety regulations Phase Two. Phase Three. For sustained improvement in occupational health and safety. For occupational health and safety mangement. (ACCREDITATION)

21. Phase One. Acknowledgements Criteria Management 30% Regulations 85% Occupational Health and Safety Program 90% Phase Two. Phase Three. Rate, IP and Work-related Accident Def. - Less than or equal to that shown in the voluntary commitment Management 70% Regulations 90% Occupational Health and Safety Program 90% Rate, IP and Work-related Accident Def. -Less than or equal to the average for this economic activity Management 90% Regulations 90% Occupational Health and Safety Program 90% Work-related Accident Rate - Benchmark: National average Work. Accident Ipx 0 Work. Accident Def. 0

22. RESULTS AUTOMOTIVE INDUSTRY COMPANIES INCLUDED IN THE TECHNICAL ASSISTANCE PROGRAM ACTIVITY SUB- SECTOR NUMBER OF COMPANIES COMPANIES WITH REC Manufacture and/or assembly of transport vehicle bodies 380262 Manufacture and/or assembly of parts and accessories for automobiles, busses, trucks, motorcycles, and bicycles 38031710 Manufacture and/or assembly of parts for vehicle and automobile electrical systems 38046022 Manufacture and/or assembly of automobiles, busses, trucks, and motorcycles 380822 Manufacture and/or assembly of engines for automobiles, busses, and trucks 380954 Manufacture of mechanical systems and their parts for automobiles, busses, trucks, and motorcycles 3810203 TOTAL11043

23. RESULTS AUTOMOTIVE INDUSTRY COMPANIES INCLUDED IN THE TECHNICAL ASSISTANCE PROGRAM.- LOCATION STATE NUMBER OF COMPANIES COMPANIES ACKNOWLEDGED SASST ACCREDITATION (FOR Mex. Social Security Inst.-IMSS) BAJA CALIFORNIA 152 CHIAPAS 1 CHIHUAHUA 195 COAHUILA 1791 GUANAJUATO 421 HIDALGO 11 JALISCO 44 MÉXICO 43 NUEVO LEÓN 82 PUEBLA 1 QUERÉTARO 3 SAN LUIS POTOSÍ 21 SINALOA 1 SONORA 136 TAMAULIPAS 115 TLAXCALA 3 ZACATECAS 33 110432

24. RESULTS ACKNOWLEGMENTS BY LEVEL TYPE OF ACKNOWLEDGMENTNo. GCNSST 27 GCNSST and MCSST 8 GCNSST, ASST and ACCREDITATION 1 GCNSST, MCSST and ASST 2 ASST 2 ASST and ACCREDITATION 1 MCSST 2 43

25. GRACIAS THANK YOU MERCI BEAUCUP