The reform to outsourcing will leave poverty and unemployment in its wake: expert in Labor Law

Note published in El Sol de México, Sociedad [Society] Section by Bertha Becerra.
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He points out that the reform to the Federal Labor Law comes at a time in which its effect could be counterproductive.

Even though the presidential bill on outsourcing is not gratuitous, but the result of the abuse by many companies that used this mode to avoid paying fair wages to the workers and, at the same time, obtaining a tax benefit, it is also undeniable that this 2020 will leave a very high level of poverty and unemployment in its wake, in the opinion of expert in Labor Law, Héctor de la Cruz.

He believes that the priority is to recover jobs as quickly as possible. He specifies that Manpower Group estimates that the crisis caused by the Sars-Cov-2 coronavirus pandemic will cause 1.8 million of people to be unemployed in Mexico

In an interview, he pointed out that the bill for the reform to the Federal Labor Law (LFT) comes at a time in which its effect could be that more sources of employment are lost.

That is, that those employers who do not agree to comply with the law and decide to terminate people from their jobs, because it is no longer in their best interest to have them, could opt, as it has happened many times before, for asking that those who remain do more with less, that is, “work more in exchange for the same.”

He underlines this that possible effect should be in the federal government’s radar, in addition to the bill for regulating outsourcing.

And a national program to reactivate industry and promote the generation of sources of employment should also be launched. Additionally, there should be calls for national and international employment fairs and the creation of programs to train workers.

Invitations should also be extended to national and foreign companies for their participation in bids for public projects as well as granting tax incentives to companies, providing favorable terms in the payment of fines, contributions and exemptions in the payment of bank interests among many others.

The specialist in labor matters from the De la Vega & Martínez Rojas Firm emphasizes: “These are some of the policies that the government could implement to mitigate the effect of Covid-19 and of the prohibition of outsourcing or subcontracting.”