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Mexican President Andrés Manuel López Obrador (AMLO) once again sparked controversy, this time declaring his intention to ban outsourcing in Mexico during his morning press conference on Tuesday, Oct. 27.

This is AMLO’s latest target in his war on corruption, with the president saying that outsourcing only allows businesses to skirt tax laws and avoid paying employees their rightful benefits.

He spoke of the alleged case of a man running a tax scam, who, during an investigation, was found to also be running an outsourcing company.

“He had 200,000 employees,” the president said, “to get rid of companies’ responsibility to pay their workers what’s right, to give them benefits, taking them off the payroll in November or December to avoid paying them a Christmas bonus and then putting them back on the payroll in January or February. Well, that’s going to end.”

Now, AMLO’s proposal will move on for consideration in the legislature. He has already said the motion will be just as controversial as his plan to get rid of fideicomisos, or public trusts, which the legislature abolished earlier this month.

…Oct. 29, 2020

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