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World Employment Confederation offers Mexico aid in drafting legislation to regulate staffing — not eliminate it

November 20, 2020

The World Employment Confederation in a letter today offered its aid to Mexico in drafting legislation that would support the industry while helping the country combat rogue firms. The confederation’s letter to Mexico’s president, Andrés Manuel López Obrador, and other government officials come after López Obrador called for banning outsourcing — the term often used for staffing in Latin America. López Obrador has recently presented his own legislation as well.

“The administration is concerned by the improper behavior of certain firms in the sector and as a result, proposes to completely ban agency work activities in order to avoid such issues,” according to the World Employment Confederation.

“A crucial solution to this is the creation of a legal framework that recognizes and regulates agency work contracts and agency work services,” the confederation said. “This sets quality market players apart from rogue players and creates a choice based on quality for business and workers alike.”

The World Employment Confederation noted a majority of developed countries have such legislation. It also said companies represented by the Mexican staffing association, AMECH, put almost 3 million people to work in 2018. Of those, almost 50% were inactive or unemployed prior to their first assignment. Many agency workers also perform essential tasks during the Covid-19 outbreak.

“We recognize the challenges that the Mexican labor market features, with its high levels of informality and an important amount of rogue providers,” said Bettina Schaller, president of the World Employment Confederation.

In the letter, Schaller said the confederation expressed its support in the fight against rogue players and offered to bring its 50 years of industry experience to draft an appropriate regulatory framework that will serve the Mexican people, labor market and economy.