AMLO Reverses Lower House Plan to Let Creditors Garnish Wages

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Just one day after Mexico’s Chamber of Deputies voted to approve a reform that would have allowed financial institutions that grant loans to workers to garnish payments directly from their salaries, President Andrés Manuel López Obrador (AMLO) let it be known on Friday, March 18, that he would veto the bill if it was passed by the Senate.

Under the proposed ruling, employers would first pay creditors and what was left over would be deposited with employees.

With 227 votes in favor, seven abstentions and 210 nay votes — including 13 from the majority National Regeneration Movement (Morena) and seven from its allied Labor Party (PT) — Mexico’s lower house voted to include the bill in the new labor law.

On taking out a loan, workers would be required to sign a contract and a payment compliance agreement with the credit institution.

But the concept of “delegated collection,” through which workers will cede payment to employers of payroll credits associated with their salaries, did not sit well with AMLO, and he made his disapproval of it public during his Friday morning press conference, stating that he is “not in favor of any law that allows workers’ wages to be garnished.”

The proposed reform then went to Mexican Senate, which first drafted the new labor law that was modified by the Chamber of Deputies to include the creditor garnishing clause, and the Senate immediately voted to put the bill on ice.

AMLO) said in his press conference that he is not in favor of any law that allows workers’ wages to be garnished.

AMLO said that if the new law did pass the Senate, he intended to veto it.

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