Mexico Legislators to Discuss Outsourcing Reform After Elections


Rogelio Israel Zamora Guzmán, senator of the PVEM, says that it was a wise decision by the President of the Republic not to present the subcontracting law as a preferential initiative

The Senate will discuss and vote after the June elections on a couple of controversial bills, which seek to regulate outsourcing and restructure Mexico’s independent regulatory bodies.

“ The most likely thing is that it will go (the reform initiative on subcontracting) for the next session, because at the end of last year the President of the Republic presented the reform of several laws such as Labor, IMSS, Infonavit, ISR, VAT, Fiscal Code of the Federation ”, declared Rogelio Israel Zamora Guzmán, senator of the Parliamentary Group of the Green Ecologist Party of Mexico (PVEM).

The agreement of the President of the Republic, Andrés Manuel López Obrador with the business sector, with whom he met at the National Palace, established a much broader debate on the reform in the field of subcontracting, said the member of the Labor and Management Commission. Senate Social Security.

“Most likely, a hasty decision will not be taken to reform outsourcing and that it will be made for the next period, which would be the first period of the next legislature,” he told Forbes Mexico.

He added that it will be something that the new federal deputies would have to analyze together with us to move forward with the reform initiative on subcontracting.

On November 12, 2020, Andrés Manuel López Obrador presented a project to reform various laws in order to restrict subcontracting, as he assured that Mexican and foreign companies used the benefits of outsourcing to commit tax fraud and lay off thousands of workers during the declared confinement to avoid a massive outbreak of coronavirus (Covid-19) in April and May 2020.

The objective of the reform initiative in the field of subcontracting is to add and repeal various articles of the Federal Labor Law, Social Security Law, Law of the Institute of the National Housing Fund for Workers, Federal Tax Code, Tax Law On Income, and the Value Added Tax Law.

Morena’s Senate leader Ricardo Monreal said a new government bill, which will favor the Federal Electricity Commission (CFE) over private investors, requires a dialogue with companies to ease their strong opposition and avoid a stream of lawsuits.

The senator noted that the electricity legislation sent by the president to Congress on Monday would be the main economic bill before lawmakers in the first part of the year.

Monreal Ávila committed to working with private energy companies to ensure that the proposal does not conflict with agreements such as Mexico’s trade agreement with the United States and Canada (USMCA).

“We are going to listen to them and the bill can be modified, enriched, and improved,” Monreal said via video conference on Tuesday, noting that investors are threatening legal action if the law is passed in its current form.

“I am very hopeful that it will be closely reviewed and that it will not violate the USMCA or the Constitution,” Monreal told the Bloomberg agency.

Meanwhile, Zamora Guzmán commented that the President of the Republic can present the subcontracting reform as a preferential initiative, but “ remember that he only presented one and still has the prerogative and it is a matter that is left to the discretion of the federal executive to present one more”.

” I see it unlikely that the reform of the subcontracting reform initiative is a preferential initiative due to the agreements reached with the business class in the National Palace,” said the senator of the PVEM.

The legislator assured that it was appropriate that he did not present the subcontracting reform as a preferential initiative, because the context of the coronavirus may create a need with greater urgency and make use of that presidential power.

“The outsourcing reform has to be serious because we cannot criminalize the Mexican employer sector. Nor can we say that the outsourcing management was a perfect system ”, concluded the senator from PVEM.


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