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News Article

Decentralization of Ministries / Outsourcing Reform

By Paloma Duran | Thu, 07/22/2021 - 11:25

Decentralization of ministries. President Andrés Manuel López Obrador stressed that his campaign promise to decentralize the ministries of the federal government is still pending. López Obrador explained that this commitment had to be postponed due to the COVID-19 pandemic. However, he highlighted that the Ministry of Energy had moved to Tabasco and the Ministry of Food Security to Zacatecas. “We have not made much progress on this issue. For this reason, we are already planning that the Ministry of Social Welfare move to Oaxaca, Education to Puebla, Tourism to Quintana Roo, Health to Oaxaca and PEMEX to Chetumal, Quintana Roo.” López Obrador added that the Ministries of Health and Culture along with PEMEX would be transferred before the end of 2021.

On Dec. 1, 2018, the day López Obrador took office, he made 100 commitments. No. 54 was that the federal government would be decentralized and the ministries would be located in different states of the republic to start benefiting other people who are not in the capital. López Obrador explained that this process was voluntary and would not affect workers; on the contrary, they would have more opportunities. Recently, López Obrador announced that 98 out of 100 goals had been met.

Formal employment rate is recovering. López Obrador stressed that formal jobs are recovering, despite the ongoing COVID-19 pandemic. López Obrador stressed that 200,000 workers must be hired to reach pre-pandemic levels. “We are close to having the 20,500,000 workers we had before the pandemic. We lost around 1,500,000 jobs during the pandemic, but we are recovering. "

At the beginning of the pandemic, in February 2020, the unemployment rate in Mexico was 3.6 percent; however, it rose to 5.5 in June 2020. According to the OECD, the unemployment rate has not recovered and remains at 4.2 percent in 2021. Likewise, the unemployment rate is expected to increase in the coming months and be 0.5 percent higher in 2022 than its pre-pandemic level. Mexico was the only OECD country that did not implement a job retention scheme during the pandemic, making it the country with the highest unemployment rate.

Extension to implement the outsourcing reform. López Obrador applauded Congress' decision to grant companies a one-month extension to implement the Outsourcing Reform. "We see the initiative very well because it is for companies to prepare and adjust to the new scheme."

On July 21, Senator Ricardo Monreal, Morena Coordinator, sent an initiative to extend until Sept. 1 all transition periods for the Outsourcing Reform that took effect on April 23. The transitional period would have expired on July 24. However, it was decided to grant an additional month to provide the necessary time for companies to transfer effectively to the new scheme. The reform, proposed by López Obrador in November, prevents companies from relying solely on subcontracting for their workforce, allowing the practice only for certain roles. At the moment, 1.6 million workers have been transferred to the new work scheme.

Israel has not responded to Mexico's extradition request. López Obrador said that the Israeli government has not responded to the Mexican request for the extradition of Tomás Zerón , former Head of the Criminal Investigation Agency (AIC), who has been accused of seizing evidence and torturing witnesses in the Ayotzinapa case. "I hope that Israel acts in compliance with the law and human rights. Also, that it allows us to deliver justice for crimes."

 In April, a judge issued a new arrest warrant against Zerón for allegedly torturing Felipe Rodríguez Salgado, an alleged leader of Guerreros Unidos who is linked to the disappearance of the students. Recently, Israeli Ambassador to Mexico Zvi Tal rejected accusations that the Israeli government was obstructing the extradition of Zerón and stressed that both governments have worked to comply with the necessary evidence and requirements needed for Israel to comply with the extradition request.

In September 2014, 43 male students from the Ayotzinapa Rural School of Teachers were kidnapped in Iguala, Guerrero. They were reportedly detained by police officers for working with organized crime and the details of their disappearance and whereabouts are unknown.

Click HERE for full transcript in Spanish

The data used in this article was sourced from:  
Gobierno de México, Milenio
Photo by:   Gobierno de México
Paloma Duran Paloma Duran Junior Journalist and Industry Analyst