**Initiative Against “Fly-by-Night” Companies Progresses in Baja California Congress**
Efforts to tackle the issue of “fly-by-night” companies—those that cease operations without fulfilling their obligations to employees—continue to advance within the Baja California Congress. This initiative, aimed particularly at foreign-owned companies, proposes penalties for businesses that engage in such practices. Alejandro Arregui Ibarra, head of the state’s Secretariat of Labor and Social Welfare (STPS), emphasized that this legal framework seeks to hold accountable those companies and their representatives that infringe upon workers’ rights when shutting down operations.
Initially introduced in March 2024, the legislation outlines fines ranging from 100 to 500 times the Unit of Measure and Update (UMA) value for businesses that close or relocate without properly compensating their employees according to the Federal Labor Law. This includes covering salaries, severance pay, bonuses, and any other due benefits.
Arregui Ibarra noted that the STPS is actively participating in collaborative discussions with local Congress, working alongside the Labor Prosecutor’s Office and various business organizations to scrutinize the proposal. He reported significant progress, highlighting the open parliament session held a couple of weeks ago, where various stakeholders shared their views. The goal is to present the proposal to the full Congress soon.
He pointed out that the problem of “fly-by-night” companies is not widespread but involves several “isolated” cases that have surfaced in recent years, primarily among foreign capital businesses that neglect their legal and social responsibilities. Up to August, the STPS identified 24 such enterprises operating in Baja California.
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**Recent Developments in Business Regulations in Baja California**
In related news, Baja California’s local government continues its crackdown on misconduct in the business sector. The ongoing provisional embargo on a Tijuana company, Aircraft, was upheld following a recent court hearing. The embargo is part of a broader push to ensure companies adhere to ethical labor practices.
Moreover, this year has witnessed growing challenges for the freight transportation sector, attributed to political developments in Mexico and the U.S. The sector reports a 20% increase in operational costs, reflecting broader economic ripple effects.
In other advocacy news, there has been a 30% rise in requests for humanitarian asylum guidance in the U.S., driven by heightened concerns over potential political shifts. Meanwhile, the U.S. has tripled its deportations since June, highlighting another facet of the complex socio-political landscape affecting the region.
As legislative and societal efforts continue to shape the business environment, Baja California remains a focal point of labor rights advancement and regulatory scrutiny.