• SUBCONTRACTING: The López Obrador administration’s proposal to ban most subcontracting of jobs by private companies could have a drastic impact across the Mexican economy including on 1.2 million jobs in the manufacturing sector.
• SECTORS: Labeled as a long-needed crackdown on abusive outsourcing, the proposal was criticized by the Mexican private sector given that it would drastically limit subcontracting to specialized services approved by the Ministry of Labor. More than 4.5 million jobs could be affected, according to ManPower Group.
• DEFENSE: “We are against simulation, evasion and tax avoidance. That is why we fight for the unrestricted enforcement of sanctions”, said Pablo Lezama, head of the association representing employment services companies (AMECH) which is asking to have more say into the legislative proposal.
• STRATEGIC: Since 1994, Mexico has transformed into a manufacturing hub. Manufactured goods account for 80% of Mexico’s total exports and they are mostly destined to the US, according to estimates by the Organization for Economic Cooperation and Development (OECD).
