Outsourcing Reform Closer to ApprovalBy MBN Staff | Thu, 04/08/2021 - 12:12
On Monday, President Andrés Manuel López Obrador tweeted that an agreement had been reached with the business sector to carry out reforms on outsourcing, as well as on profit sharing. In a meeting with representatives of the private sector and trade union leaders, the government agreed to a three-month deadline for outsourced workers to move to the payroll of the real employer. The reform will now go to Congress for approval.
This reform opens the possibility for contributions to the National Workers' Housing Fund Institute (INFONAVIT) to increase by MX$2.8 billion (US$56 million), said Carlos Martínez, the institute's Director General, on Wednesday. “We have estimated that employers are saving MX$3.8 billion (US$76 million) in dues payments through abusive schemes,” he said.
In Mexico, 5 million workers are subcontracted, according to INEGI data, and around 860,000 of them suffer from labor undervaluation, meaning that employers register them with the Mexican Social Security Institute (IMSS) at a lower wage than they actually receive, Martínez said at a press conference. Once the outsourcing reform is approved and enforced, INFONAVIT will be required to report to the Ministry of Labour and Social Security (STPS) on a biannual basis regarding any non-compliance. Mexico is the fourth country with the highest number of outsourced workers, according to the World Employers' Confederation (WEC).
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