International HR Issues

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Executive Summary
 Southwest Airlines is considering expanding into
Mexico.
 This presentation will identify three human resource
considerations that Southwest should be aware of in
planning its expansion:
1. Labor laws
2. Safety, and
3. Cultural differences.
 For each consideration, we will provide a
description of the issue, an explanation of why it
could arise, and a recommended strategy for dealing
with it.
 Issue 1 - Labor Laws

 Description:
 Mandatory benefits such as vacation pay,
sick leave, and bonuses
 High severance pay requirements
 Restrictions on overtime work
 Complex unionization laws
Issue 1 - Labor Laws
 Why This Issue Could Arise:
 Mexico has strict labor laws that Southwest
would need to comply with, even if it is not
unionized.
 Failure to comply with labor laws could result
in fines, penalties, and even legal action.
 Southwest would need to carefully review and
understand Mexican labor laws before
expanding into the country.
Issue 1 - Labor Laws
 Recommended Strategy:
 Hire a local HR consultant to help
Southwest comply with Mexican labor
laws.
 Develop a comprehensive HR policies and
procedures manual that is tailored to
Mexico.
 Provide training to all employees on
Mexican labor laws and Southwest's HR
policies.
 Regularly audit HR practices to ensure
compliance.
.
 Issue 2 - Safety

 Description:
 High crime rate in some areas
 Lack of safety regulations in some
industries
 Cultural differences in safety attitudes.
Issue 2 - Safety

 Why This Issue Could Arise:

 Southwest would need to take steps to
ensure the safety of its employees and
customers in Mexico.
 Failure to do so could result in:
1. injuries,
2. Deaths, and
3. Damage to Southwest's reputation.
Issue 2 - Safety
 Recommended Strategy:
 Conduct a safety assessment of all
potential locations before expanding into
Mexico.
 Implement appropriate safety measures
such as security guards, CCTV cameras,
and safety training for employees.
 Purchase adequate insurance to protect
against liability in the event of an
accident.
Issue 3 - Culture

 Description:
 Different work culture and values
 Language barrier
 Cultural differences in communication
styles
Issue 3 - Culture
 Why This Issue Could Arise:
 Southwest would need to adapt its
corporate culture to Mexico in order
to be successful.
 Failure to do so could lead to:
1. Employee dissatisfaction
2. High turnover, and
3. Difficulty attracting and
retaining top talent.
Issue 3 - Culture
 Recommended Strategy:
 Hire a local HR consultant to help
Southwest understand and adapt to
Mexican culture.
 Provide training to all employees on
Mexican culture and business etiquette.
 Encourage employees to learn Spanish
or other local languages.
 Create a diverse and inclusive workplace
that welcomes Mexican employees.
Conclusion

 Expanding to Mexico presents a number of

human resource challenges, but these
challenges can be overcome with careful
planning and execution.
 By following the recommendations above,
Southwest can:
 Minimize the risks and
 Maximize the chances of success in
Mexico.
References
• Communications, T. (2020, January 29). Labor Law Reform in Mexico 2019: Know
the facts. Border Assembly. https://borderassembly.com/labor-law-reform-in-mexico-
2019/
• de San Miguel, S. R., & Jorge, A. (2020). Labour relations in Mexico: change and
continuity. Labour, 41(10), 1.
http://ww.revistaespacios.com/a20v41n10/a20v41n10p01.pdf
• Schwarzer, H. (2023). Improving occupational safety and health in the global value
chain of coffee in Mexico: Drivers and constraints. Vision Zero Fund.
https://vzf.ilo.org/wp-content/uploads/2021/04/Improving-occupational-safety-and-
health-in-the-global-coffee-supply-chain-from-Mexico-Drivers-and-constraints.pdf