Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 1 Spotlight on Grupo Altex, Mexico Supporting Employees through Childcare Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 2 About IFC IFC—a member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2021, IFC committed a record $31.5 billion to private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity as economies grapple with the impacts of the COVID-19 pandemic. For more information, visit www.ifc.org. Copyright and Disclaimer Notice © International Finance Corporation 2022. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 Internet: www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. June 2022 Acknowledgements This Company Insights publication was produced by IFC’s Gender and Economic Inclusion Group in collaboration with Grupo Altex and benefitted from the contributions of Hipocampus Centros de Aprendizaje. The information presented here is based on data gathered and interviews conducted during October-December 2021 by IFC’s Anita Gurgel and María Teresa González García with support from Grupo Altex’s Héctor Espinosa Trujillo, José Leonardo Hernández Robles, and Georgina Alvarado Díaz, as well as Hipocampus’ Germán Zubía. The authors would like to thank Grupo Altex’s Co-CEOs Roberto and Mauricio Servitje Labarrere for their availability to discuss their experience and share lessons learned. This publication was developed under the guidance of Emmanuel B. Nyirinkindi (Vice President of Cross-Cutting Solutions, IFC), Mary Porter Peschka (Director, Sustainability & Gender Solutions, IFC), Henriette Kolb (Manager, Gender and Economic Inclusion Group, IFC), and Rudaba Z. Nasir (Global Lead, Care and Economic Inclusion, IFC). All report photos courtesy of Grupo Altex and/or Hipocampus Centros de Aprendizaje. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 3 1. Context Mexico is the most populous Spanish-speaking country in the world with over 126 million people (INEGI, 2020), and the second largest country in Latin America and the Caribbean, after Brazil. Female labor force participation (FLFP) in the region has risen considerably over the last two decades—25 percent between 1990 and 2018 (World Bank, 2020). Despite this progress, gender gaps persist. With 42 percent of women aged 15 and older in the labor force, in contrast with 74 percent of men, Mexico has the third lowest FLFP among Organization for Economic Co- operation and Development (OECD) members (OECD, 2020). Closing the gender gap in the labor force offers an opportunity to increase Mexico’s GDP by $800 billion, or 70 percent (McKinsey, 2019). The Importance of Quality, Affordable Childcare for Women’s Employment The disproportionate time women spend on unpaid work dedicated to household chores and care responsibilities is a key barrier to women’s employment. In Mexico, women bear nearly 77 percent of unpaid housework (World Bank, 2019), spending an average of six hours per day—the childbirth. Studies show that equal parenting behaviors highest in the OECD—compared with an average of two tend to continue as children age (OECD, 2017). Mexico law, hours for men. however, mandates only five days of paternity leave—a low allotment when compared to that of other OECD countries During the COVID-19 pandemic, women have shouldered (OECD, 2017). increased care responsibilities given closures or restrictions on public and private schools, as well as childcare and elderly care services, including those provided by employers The Business Case for Employer-Supported (McKinsey, 2020). During the pandemic, Mexican women Childcare have reported an increase of 13.2 hours per week spent on childcare. Men reported 6.3 additional hours. The gap between the time women and men spend on childcare is the Once women are employed, it is critical that employers have highest among 16 surveyed countries (UN Women, IPSOS, adequate policies in place to support women and working 2020). parents in general through the different stages of their lives, including during their children’s early years. Research by Engaging men to equally care for children can be a game IFC and other organizations shows that companies that changer for women’s labor force participation. A balanced provide family-friendly benefits are more likely to profit from share of caregiving responsibilities at home can open a increased workforce stability, skills, and productivity. Those pathway for working mothers to remain employed or seek gains, in turn, enhance family income and business and paid work opportunities. Paid paternity leave policies economic growth. Investing in childcare solutions is a smart are a way to encourage fathers’ active involvement since investment for all (Fig 1). Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 4 Fig 1. Benefits of Quality Early Childhood Care and Education Childcare and Early Childhood Education for Individuals, Families, Businesses, and Society Enrollment in Mexico From paid parental leave to flexible work schedules to • Strengthens recruitment employer-supported childcare, family-friendly workplace • Increases diversity and talent policies can help close gender gaps that are especially • Enhances corporate reputation • Improves staff retention exacerbated when the supply of affordable, accessible, and • Increases productivity quality childcare does not meet the demand, as is the case EMPLOYERS in Mexico. In the country, the early childhood education and care system covers children aged 0-5 years old and on average, 60 percent of them are enrolled in an early childhood education center (IDB, 2019). • Enhances social, mental, physical, and emotional development • Improves school readiness, retention, completion, and A Note on Mexico’s Estancias Infantiles CHILDREN achievement • Improves outcomes in adulthood In 2019, the Mexican government implemented new austerity measures and ended a major public childcare program called Estancias Infantiles para Apoyar a Madres Trabajadoras (Childcare to Support Working Mothers). The • Increases gender equality program targeted low-income women aged 15 • Improves work-life integration • Enhances access to better, and older with children between one and four paid jobs years old and covered about 90 percent of • Supports parenting and mental childcare costs (Banco de México, 2014). Since and physical well-being its launch in 2017, Estancias Infantiles served PARENTS over two million children nationwide and reported an 18 percent increase in women’s likelihood to be employed and improvement on children’s language, motor, and social skills. Program evaluations showed that thanks to the program, working mothers and fathers gained an average • Builds human capital • Saves health care costs of 34 hours per week to access the labor market, • Improves productivity and preserve their employment or study (CONEVAL, earnings 2018). The program was replaced with a cash SOCIETY • Enhances socio-economic development allowance of $1,600 Mexican pesos per child (around $80 USD) every two months that the family can decide how to spend. The stipend is Source: IFC Gender and Economic Inclusion Group, 2019 higher for families with children with disabilities at $3,600 Mexican pesos (around $180 USD) per child every two months. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 5 2. Company Overview: Grupo Altex Grupo Altex started in 1986 as a supplier to one of the largest bread-making companies in Mexico and became an independent group in 1999. Currently, Altex is a leading agro-industrial business serving national and international clients, such as Grupo Bimbo, Danone, and a variety of companies in the United States, Europe, and Japan. Altex is one of the largest companies in North America involved in the cultivation and commercialization of hydroponic lettuces, also producing millions of pounds of frozen goods, fruit cups, jams, purees, and citrus products, which are marketed in the food, beverage, and retail industries. Altex also participates in commercial mariculture through the only farm dedicated to fresh tuna in the world. With an annual revenue of USD$ 600-650 million and over 7,000 employees, the group is currently led by brothers Roberto and Mauricio Servitje Labarrere, sons of Altex’s founder Roberto Servitje Achútegui. Altex has 10 plants Altex’s Employee Profile (2020) or operation centers in rural areas across the country. Its headquarters are in Mexico City with satellite offices in Barcelona, Tokyo, and Miami. Total number of employees Women: Men: Total: 3,619 (51%) 3,443 (49%) 7,062 Operation Centers Permanent contract employees Women: Men: Total: Mexico 1,709 (48.3%) 1,826 (51.7%) 3,535 Seasonal contract employees Women: Men: Total: 1,910 (54.2%) 1,617 (45.8%) 3,527 Employees aged 18-40 Women: Men: Total: 2,302 (47.6%) 2,530 (52.4%) 4,832 Employees who have children aged 1-6 Women: Men: Total: 338 (48.1%) 365 (51.9%) 703 Employees in executive management positions Women: Men: Total: 19 (12%) 139 (88%) 158 Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 6 Altex: A Family-Friendly Workplace Grupo Altex has established a series of policies, benefits, and initiatives destined to make Altex a place where working mothers, fathers, and their families feel welcome and supported. For instance, the group offers subsidized childcare services for employees’ children aged 1-6 years old as well as for community members. Here, parents pay a small amount for high-quality service near their workplace— most of them in rural areas where this type of childcare offering is rare. All Altex employees, regardless of contract type, receive paid maternity and paternity leave in accordance with Mexican law. This means women receive 42 days of paid leave before giving birth and 42 days after the child is born while men are entitled to five days of leave. Lactation breaks are provided. The company has also implemented flexible work arrangements for certain roles and operations centers, a policy that has been expanded due to COVID-19. Other Family-Friendly Benefits, Initiatives, and Recognitions Among the benefits Altex offers employees is safe transportation free of cost. It has also implemented Genios Altex, a popular program among employees with the goal to incentivize and recognize strong academic performance of employees’ children enrolled in elementary and middle school. Altex employees are bound by a code of ethics, and the company has set up a mechanism to prevent and address sexual harassment, according to its policy on the topic. Additionally, the company assesses its work climate through annual surveys. In the past decade, Altex has been featured among Mejores Empresas Mexicanas (Best Mexican Companies) several times and recognized twice by the Workplace Wellness Council in Mexico for being a responsible and healthy organization. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 7 Madre Tierra catalyzes the efforts of seven organizations 3. Altex’s Support with the goal to support small strawberry farmers. According to Childcare to Georgina Alvarado Díaz, Manager of the Madre Tierra initiative, they noticed that many children were spending their days in the fields, so they decided to conduct a survey, Why and How It Started uncovering demand for childcare for small farmer families. Grupo Altex opened its first childcare center in 2016, in “It was key for this initiative to simultaneously create positive San Cristóbal, Guanajuato, where the company has two social and environmental impacts. In the long run, this plants. Altex was motivated by a desire to offer employees, not only benefits the community, but also our business by including its many women and manual workers, a healthy, strengthening our relationships with international buyers and strong workplace and to help improve the lives of people other companies.” in its communities. The Group’s leadership also thought offering childcare support to employees could help increase Georgina Alvarado Díaz retention and reduce absenteeism. The company was interested in exploring what kinds of benefits, beyond increasing salaries, it could offer that could have a real impact on people’s lives. Altex had always employed a significant percentage of women and at the time, the company was expanding rapidly. Once Altex’s leadership met childcare provider Hipocampus, the two organizations conducted research that revealed that families were often paying between $20 and $50 Mexican pesos per day (between $1 and $2.5 USD), a high cost given their income levels. Options for childcare in the communities where Altex is present were often scarce and/ or of low quality. When the federal government cancelled its popular Estancias Infantiles program, it aggravated the situation further. According to Roberto Servitje, Grupo Altex’s Co-CEO, investing in childcare for their employees was consistent with his father’s values, who had founded the company years earlier. This was also around the time Roberto was having his own children, so the importance of quality care for young children was very much present on his mind. “We wanted it to be a place where we’d feel comfortable enrolling our own children,” he said. What Altex Offers Altex currently has five childcare centers run in partnership with Hipocampus. Four of them serve Altex employees as well as community members and one of them targets children from supply chain workers, as part of the sustainable development initiative Madre Tierra, led by Danone, one of Grupo Altex’s clients, with strong participation by Altex and NGOs NUUP and Technoserve. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 8 Altex’s Childcare Centers A Note on Hipocampus 1. San Cristóbal, Guanajuato A B-certified social enterprise* created in 2016, Serving Altex’s operations Xtra León & Next Vegetables Hipocampus’ mission is to increase access to quality childcare services at a price that is affordable to 2. Zamora, Michoacán most families in Mexico. Hipocampus does this by Serving Altex’s operation Frexport Zamora partnering with companies interested in offering quality 3. Martínez de la Torre, Veracruz childcare services to their employees. In addition to Serving Altex’s operation Citrex developmental benefits for children, access to quality care contributes to a stable workforce for businesses 4. Celaya, Guanajuato and decent work for women. Serving Altex’s operation Xtra Celaya When working with the private sector, Hipocampus 5. Maravatío, Michoacán partners with companies to adapt its childcare solutions Serving the children of Altex’s small strawberry farmers in to their needs and the needs of their workforce, the community of Maravatío, where the Madre Tierra social customizing location, opening hours, cost, and teaching initiative takes place methodology. Hipocampus’ objective is to design solutions to adapt to the way people learn, live and work today, aiming to put children, parents, and communities In 2021, 117 children aged 1-6 years attended Altex’s at the center, seeking to participate in the construction childcare centers, which offer high-quality care and of a culture where quality early childhood care and education, inspired by the Montessori methodology, education is accessible, valued and paramount. according to a low-cost model. Since the Group started offering childcare services in 2016, 721 children have According to Germán Zubía, the private sector is benefited from the services. central to helping increase access to quality childcare in Mexico. “Corporate leaders have an important role to Describing Hipocampus’ childcare provision, Germán play. If you want to build businesses that last, business Zubía, the organization’s co-founder, says that access and as usual is no longer possible.” quality are key words. In the case of Grupo Altex, as with other organizations Hipocampus works with, the childcare *recognized as a ‘Best for the World’ organization centers are well-integrated into the communities, employing by B Lab, which certifies companies that meet high standards of social and environmental performance, local women, using local materials, and establishing strong accountability, and transparency. relationships with the families of children enrolled. What Employees Say For Jessica Fernanda Rodríguez, who has been working in Altex’s Next Vegetables plant in San Cristóbal for two years, knowing her children are well-cared for is comforting. “Having them there and going to work, it gives us peace of mind that they are well, learning, safe,” she said. For Mónica Medina López, who also works at Next Vegetables and whose 3-year-old son has been attending the childcare center for two years, well-balanced meals, an emphasis on local traditions, and the fact that her child really likes the center all contribute to a positive evaluation of the childcare center. Similarly, for María Eleazar, who works at Xtra León, it is the progress that her two-year old daughter has made in Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 9 language acquisition, especially in comparison with other To help companies understand the impact of their childcare children who don’t attend a high-quality childcare center, support, Germán Zubía from Hipocampus says they that has impressed her the most. periodically surveys working parents with children in their centers, even as there are many intangibles to the bottom For Alan Daniel Guerrero Agustín, thanks to the center’s line that are difficult to measure, like the impact of having a opening hours, leaving his daughter in the care of higher number of women in leadership positions. Hipocampus, “has helped me a lot to be punctual at Frexport.” Lucero Anguiano, from Xtra León, reinforces the According to a 2021 survey with 46 Altex parents covering importance of the childcare center in her work life. the four childcare centers open to Altex employees: “For me, what I like the most are the operating hours, • 100 percent believe that access to the service has compatible with my work hours. The first year it was my allowed them to increase their productivity, mother-in-law who cared for him, but it was quite difficult • 60 percent of parents said that Hippocampus was a because she sometimes had to go out, go to medical factor in their decision to join the company, appointments, so I had to miss work to stay with my son as I • 97 percent mentioned that the service increases the didn’t have anyone else with whom I could leave him [...] but probability of continuing to work in the company, now that there is Hipocampus, it has helped a lot.” • 40..percent mentioned having turned down an opportunity in order not to lose the Hipocampus service, Lucero Anguiano • 98 percent say the service has helped them better balance work and family responsibilities. Business Benefits and Costs While Altex’s leadership is clear that offering this type of support to their employees, both male and female, as well as their communities, is part of the group’s DNA and contributes to the company’s commitment to strengthen their value chain, one of the reasons Altex chose to open its first childcare center in San Cristóbal was the rapidly increasing number of new employees in its plants in the region and issues with high rotation among those new additions. In San Cristóbal, as well as in the three other locations where Altex has opened childcare centers targeting employees, the rotation rate has been going down at least since 2019 and stands at under 7 percent on average. While this decline cannot be fully attributed to the childcare centers, the company’s HR believes investments in childcare have contributed to the decline because lack of childcare is one of the main reasons cited by working mothers in the past for why they were leaving the company. The same is the case for absenteeism rates, at an average of 4 percent for the plants in 2021, which have been declining since at least 2019 and are often associated with “personal matters,” including childcare. “From what we have done, I believe the most important and where we’ve invested the most were the childcare centers, and we have improved considerably.” Roberto Servitje Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 10 Altex also associates their investment in childcare with helping to strengthen the company’s social responsibility. Because Altex’s plants are often located in small towns, the noise and traffic they generate, for example, can inconvenience some people. Others associate large companies with exploitation of local resources. For the Group, it was important to clearly demonstrate that in addition to the economic benefits it generates to a region, including through employment, that it is also invested in their social development. “Part of what we are gaining with this is strengthening the company’s image. It helps us to have people notice an authentic interest, that we don’t want to simply benefit the company, but also in a way give back, share, and benefit the communities where we operate.” Mauricio Servitje Altex has made a capital investment of approximately $3 million Mexican pesos ($150,000 USD) in its childcare centers. While the company covers most of the operational costs for its employees (community members pay a slightly higher fee), it is important that families also contribute to monthly fees to foster accountability and co-responsibility. While the company pays around $1,000 Mexican pesos ($50 USD) per child per month—in addition to other operational But even prior to the pandemic, filling the childcare centers costs—family contributions are around $250 Mexican pesos with children was not an automatic proposition. Lack of ($12.5 USD) per child per month, which various families information about the benefits of quality childcare services have rated as “very accessible.” for children’s development is common in rural parts of Mexico. Resistance to enrolling children in care outside of the home is also influenced by social norms around who Overcoming Challenges should care for young children (e.g., the mother, the family). In other cases, the low quality of care of public and private centers around the country, sometimes involving accidents As with any new, innovative program, delivering high-quality, and child abuse, rightly worries parents and leaves the affordable childcare also has come with some challenges. impression that all centers are the same, generating a The COVID-19 pandemic was one of them. Similar to many persistent uneasiness around the topic. childcare centers around the world, Altex’s centers shut down in 2020 for an average of five months. When the centers In the case of Rosario Bautista, mother of a 3-year-old reopened, they did so according to rigorous health and who attends the Maravatío childcare center, for example, it safety protocols, says Hipocampus. However, some parents was her husband who was against enrolling their son. The were still concerned about COVID-19, so they chose to keep husband was worried about “things that have happened in their children at home longer. Enrollment levels dropped by other childcare centers.” What convinced the family that a 62 percent between when Altex’s childcare centers closed quality center could be valuable was the fact that their only in March 2020 and when they reopened in July-October of child almost did not speak at the age of three. “On his first the same year. While attendance has increased since then, day, he came out very happy. Now he talks a lot. The results it is yet to reach pre-pandemic levels, which is a challenge are showing already, and we’re fascinated with them,” says faced by many centers around the world. Rosario. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 11 For Mónica del Carmen Torres, an Altex employee at the development of other children who attended the centers – Xtra León plant, it was also her husband who thought their and wanting that for their own children – was what made son was too young for a childcare center and that he was them decide in favor of the centers. In situations where social better off at home. But Monica got tired of seeing the child norms play a role, being able to count on the endorsement on the phone or in front of the TV all day, so she enrolled of users, including of men, is important. Next Vegetables him in the childcare center. “ It happened very fast. At home, employee Aarón Abrahám Ferniza Durán said he felt very his grandparents and his aunts, even though they miss him comfortable discussing the topic in his community. because they were the ones caring for him, they really see that there is a benefit, so they say, yes, he should keep going.” “The service and the way they educate the children seems right to me; my kids have learned a lot of numbers, words, On the business side, maternity return rates are still relatively to socialize with other children. I value this very much and low at Altex. After new mothers go on maternity leave, in without any doubt I could recommend the service to other some plants only about 30-45 percent are still working with parents.” Altex one year later. While some of this is due to mothers preferring or being expected to care for their young children Aarón Abrahám themselves and to the seasonality of the work (50 percent of Altex employees are seasonal workers), it might also be related to lack of safe and reliable childcare. Children must To expand access to their childcare services, in early be at least one year old to enroll in Altex’s childcare centers, 2022 Altex also expanded enrollment to three new groups so the period between the end of maternity leave and the time of children: employees’ younger siblings, employees’ the child turns one is not covered. Because extending care to nephews and nieces, and employees’ grandchildren, said very young children is different from adding more children to José Leonardo Hernández Robles, Organization and existing spots, in that it requires specialized care and lower Compensation Manager at Altex. teacher-child ratios, Altex has been in conversations with Hipocampus on the feasibility of lowering its entry age. “The childcare centers are an excellent benefit for our As some of the childcare centers are still operating under employees and their children because they are located in safe capacity of 60 children per center, Altex leadership and spaces, are based on a learning system that truly stimulate Hipocampus have also had to be creative in showcasing the children’s cognitive development, promote children’s benefits to families and children. Often, the benefits are best autonomy, offer customized learning, and teach children how communicated by parents of enrolled children themselves. to be responsible and respectful, while their moms and dads Various Altex mothers and fathers reported that seeing the can be relaxed to perform their other activities.” José Leonardo Hernández Robles By expanding access to childcare, Altex is also hoping current caretakers, typically adolescent girls and other women in the family, could be freed to attend school and/or take on paid work, increasing family well-being and income, Leonardo Hernández adds. Importantly, Altex has also taken operational measures to help facilitate access to their childcare services. The company, whose business model involves seasonal workforce (based on agricultural timings) and shift work, has made efforts to fix the shifts of working mothers with young children (e.g., ensure they work the day shift) so they can keep their sons and daughters in the childcare center and spend the evenings with them at home. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 12 According to Héctor Espinosa Trujillo, the company’s HR 4. Lessons Learned Director, “a short-term view can cost a company a lot.” The and Next Steps costs associated with providing quality childcare services, for example, can be high, he says, but when you are interested in people, in families, in the community, you are One of the lessons Grupo Altex has learned on its childcare able to put the short-term view aside. For Roberto Servitje, journey has been the importance of establishing good “the intangible benefits can be much more important in the partnerships. Co-CEO Roberto Servitje is keen to highlight longer term.” Altex’s work with Hipocampus. For Mauricio Servitje, taking the time to understand an issue “If we tried to do this internally it would have been very and to study successful cases of companies already active difficult, we don’t have this expertise, so we believe it’s key in a particular space is important, helping to increase a to find a strategic partner, an expert in managing childcare firm’s level of comfort with the topic, leading to benefits for centers, with a shared philosophy and vision.” everyone. Roberto Servitje “The message I wanted to convey is that our doors are The importance of extending childcare services to open, and we would gladly share with you the things we community members, beyond the company’s employees, is have achieved and the benefits we have reaped. We would also something that Altex’s leadership wants to highlight for like more companies to join this type of initiative every day other companies interested in investing in childcare. “It was so that the impact would be much greater and considerable always very important that the centers were not exclusive for change would happen. It is in our hands, as business our employees because [...] in many cases these are small leaders, to open these opportunities to people, especially to communities that have limited access to many services, those who have given so much to us and to our companies. especially to education. So, it was very important for us to If we intend to make sustainable change in the country, it is offer this benefit to the whole community, not limiting it just in our hands, the hands of the private sector; we know that to Altex employees,” said Mauricio Servitje. this goes far beyond ourselves.” Mauricio Servitje Altex and Hipocampus are continuously working to improve Altex’s childcare offerings and make the service available to those who can benefit from them. In the future, as more children attend existing centers and the pandemic subsides, Altex may consider opening additional centers to serve some of their other operations around the country. Eventually, the company might also be interested in finding ways to support rural education and women’s health. In 2022-2023, Altex will participate in Empresas Mexicanas X Equidad, an IFC program that aims to help close the gender gap and promote diversity and inclusion in the private sector in Mexico. Through this program, Altex plans to work on childcare and women leadership, among others. Message to Other Companies For Altex’s leadership, it is crucial that the private sector adopts a longer-term view related to social investments. Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 13 Annex I: Additional Background Information The Importance of Quality, Affordable Childcare information and facilitate supervision. ECCE in Mexico is for Women’s Employment also guided by the National Strategy for Early Childhood. As of 2019, there were over 13,570 registered childcare Working mothers in Mexico face increased difficulties to centers in the country with the highest concentration in the engage in paid work, regardless of their level of education State of Mexico and Mexico City (INEGI, 2019). or income status—mainly due to social norms backing the unequal distribution of care, the limited offering of quality, The latest national survey on employment and social affordable, and accessible childcare services, and parents’ security in Mexico (INEGI, 2017) showed that from the 14 barriers to adapt to the childcare supply (World Bank, 2020). million children aged 0-6 years old: The challenges faced by women to engage in paid work • 13.7 percent were cared for by their grandmothers have a negative impact not only on women’s employment while their mother was at work opportunities, income, and promotion, but also on children’s • 7.2 percent were under the supervision of someone well-being. For instance, global research shows that child else poverty reduction is closely associated with growth in • 3.1 percent went to a public childcare center maternal employment (OECD, 2018). • 1 percent went to a private childcare center In Mexico, women in formal employment are entitled to 42 The rest who are not accounted for in this survey are cared days of paid leave before giving birth and 42 days after for by their mother at work, their mother doesn’t work, are the child is born (Ley Federal del Trabajo, 2021). In 2017, left alone, or go to school. 739,000 working women between 15 and 49 years old across Mexico mentioned receiving maternal care during From the children 0-6 years old who were cared for while the birth, pregnancy complications, or abortion. Out of these, mother was working, prior to the end of the public Estancias only 45 percent said to have obtained maternity or medical Infantiles program: leave at work (INEGI, 2017). • 75.7 percent attended a public childcare center • 24.1 percent attended a private childcare center Childcare and ECCE Enrollment in Mexico While preschool is mandatory in Mexico, in 2018, 82 percent of 3-5 year-olds were enrolled in ECCE programs and primary education (OECD, 2020). It is also reported that 20 percent of children aged 3-4 years present inadequate development in at least one area related to literacy, numeracy, and physical and social-emotional skills (IDB, 2019). Childcare provision is contemplated in Mexican federal law with the purpose of coordinating, improving, and evaluating public, private, and mixed childcare services. The law outlines minimal safety requirements for childcare facilities— which are allowed to receive children as young as 40 days old—and establishes national registration to centralize Spotlight on Grupo Altex, Mexico: Supporting Employees through Childcare 14 © 2022