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MEXICO CITY (AP) — Mexican President Andrés Manuel López Obrador proposed Tuesday a blanket ban on sub-contracting or outsourcing of jobs by personal firms, saying the observe has been abused to keep away from paying workers’ the advantages they’re due by regulation.
The president mentioned he would ship the proposal to congress at a later date, however the plan already drew criticism from enterprise teams that declare the change would additional hurt Mexico’s economic system exactly when it’s nonetheless reeling from the results of the coronavirus pandemic.
Corporations in Mexico typically contract out jobs like upkeep, cleansing and warehouse duties to non permanent businesses or outdoors corporations, to keep away from the expense of getting to promote for and rent workers, or to extend their workforce for brief intervals of time.
Such workers steadily work at an organization’s services, however are paid by one other agency.
López Obrador cited abuses Tuesday in calling for the ban, together with the case of 1 outsourcing agency accused of fraud.
The agency “had listed 200,000 workers, to launch firms from the accountability for paying them correctly, to keep away from paying them their advantages, to fireplace them in November or December to keep away from paying them annual bonuses after which to rehire them in January or February,” López Obrador mentioned.
“I’m going to jot down a invoice to get rid of this mechanism,” he continued. “We have now to wash issues up, we can’t be accomplices to corruption or coverups.”
Mexico’s Employers’ Federation, a enterprise group, mentioned in a press release that it opposed fraudulent makes use of of outsourcing just like the one cited by the president, however mentioned a complete ban “would have a grave affect on the already critically deteriorated (financial) scenario, and would imply the lack of a substantial variety of authentic and correctly paid jobs.”
“We oppose any authorized reform that prohibits labor subcontracting that complies with all authorized requirements,” the group mentioned.
Whereas Mexico’s minimal wage is a woefully low $5.50 per day — nicely beneath $1 per hour — advantages are proportionally barely extra beneficiant, leaving some firms a monetary incentive to keep away from them. Mexico legally requires firms to pay contributions to well being and retirement plans and annual year-end bonuses and profit-sharing, the place relevant.
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