Mexican President Andrés Manuel López Obrador proposed on Tuesday, October 27th, a blanket ban on sub-contracting or outsourcing of jobs by private companies, saying the practice has been abused to avoid paying employees’ the benefits they are due by law.
“I am going to send a bill so that this mechanism disappears. It is going to be another controversial issue, I advance it, like trusts, but we have to clean up, we cannot be accomplices of corruption, “he said.
The president said that this contracting scheme has been used by companies to evade their fiscal and employer obligations, which, he assured, has affected workers, public finances, and the development of the country.
“Those reforms that they made (to allow outsourcing ) were based on the fact that in this way the company was helped so that it would not engage in administrative procedures, so that it could have a contract with a company that would manage the payments to the workers, payment to social security, Infonavit; and the companies are abusing their employees”, AMLO continued.
In the Senate, they were already working on an initiative to regulate outsourcing, which was discussed with the business sector during an open parliament. The initiative divided the legislators of Morena, the party in power, because, Ricardo Monreal, coordinator of the Morena party in the Senate, supported the opinion.
Based on what the president said this morning, it seems that the government will opt for the route of terminating this labor scheme, instead of thinking of more sophisticated ways to regulate it.
Apparently, the Mexican president is not aware of the fact that more than 8 million people in Mexico work regularly under the “outsourcing” scheme, and if the government decides to terminate it, millions of Mexican families are going to lose their income.