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Weekly Roundups

Outsourcing Reform Closer to Approval

By 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).

More news below:

  • This week, Alejandra Macías, a researcher at the Center for Economic and Budgetary Research (CIEP), and Jorge Sánchez Tello, Director of Applied Research at the Foundation for Financial Studies (FUNDEF), warned in an interview with Expansión about the cost to public finances of President López Obrador's announcement regarding an increase in pensions from MX$2,700 (US$134) to MX$$6,000 (US$298) over the next three years, coupled with a drop in the retiring age from 68 to 65.  “The cost of the program could reach 3 percent of the GDP by 2050,” Sánchez Tello said.

  • Mental disorders have increased during the COVID-19 pandemic and now affect 25 million people in Mexico, equivalent to 18 percent of the population, said the Institute of Security and Social Services for State Workers (ISSSTE). Faced with this scenario, the institute said it has implemented comprehensive care strategies to prevent and assist patients with these pathologies through the PALIATIVISSSTE program.

  • US unemployment claims rose for a second week in a row, underscoring the “uneven nature of the labor market recovery,” Bloomberg reported. Initial claims in regular state programs rose by 16,000 to 744,000 in the week ended on Apr. 3, according to Labor Department data released Thursday. 

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