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Weekly Roundups

Illegal Outsourcing on the Chopping Block

By Cas Biekmann | Fri, 02/14/2020 - 14:09

Government Starts Labor Reform Project Against Illegal Outsourcing

Outsourcing has been under the radar in Mexico, until now. To make sure outsourced work meets all the requirements regarding worker protection and due taxes, a reform has been initiated. Seven outsourcing companies have been closed by STPS for illegal practices. The secretary states that its inspections have been effective so far.

All of these steps are necessary to protect workers. Infonavit Deputy Director Oscar Vela says workers under illegal outsourcing schemes are not paid adequately. Workers have had to wait six years longer to be able to receive mortgage credit. After this, it takes an average of 27 years to pay the mortgage off, which is double of what is considered normal.

Nonetheless, Morena Senator Ricardo Monreal stresses that the reform is only meant to tackle less-than-savory outsourcing companies. Both companies looking to outsource work and those providing it have nothing to fear as long as they ensure due taxes are accounted for and workers are protected.


Job Creation Drops 27 Percent in January

The highest drop in a decade means only 69,995 positions have been created in Mexico. It is the lowest figure since the global financial crisis in 2009, reports IMSS. It should be noted that last year, at the beginning of the López Obrador administration, the amount of jobs created was 94,646.


Law Reform Improving Transparency on Wages

The Labor Commission of the Chamber of Deputies will discuss the reform aimed at eradicating corruption. If the reform is successful, union leaders have to declare potential conflicts of interest, properties, taxes and even limit their salary.


ACNUR, ILO and EU Launch Program to Incorporate Refugees in Labor Market

The international entities have set a common goal to incorporate 20,000 refugees in Mexico’s labor market. Refugees face xenophobia, discrimination and racism in their search for work, leading to ACNUR reaching to integrate 6,700 refugees in the country. Half of the refugees are of working age and contributed US$2.20 million dollars in taxes. If goals are met, tax income could increase over four times. Around 14 percent of people asking for asylum received it in 2019.

Underage refugees are the most at risk in Mexico. Children and adolescents fleeing poverty and violence are often abused and forced to work in informality, agriculture or human trafficking, depending on their origin.


Mexico Faces “Epidemic” of Stress at Work

Stress at work is something everyone deals with from time to time, yet in Mexico the mix of long working days and poorly regulated overtime are extra factors causing stress for Mexican workers, according to Citrix. Around 64 percent of workers claim to be affected. The Mexican government is already recognizing mental risks at the workplace and creating regulations to battle the issue. This is no surprise, considering IMSS signals 75 percent of workers show signs of exhaustion, coming directly from stress at work.

The data used in this article was sourced from:  
El Economista, El Universal
Photo by:   Wikipedia Commons
Cas Biekmann Cas Biekmann Journalist and Industry Analyst