Prohibition in Mexico is not the solution

10, November

  In the context of a cycle called Coffe&Tea Chat organized by staffingamericalatina, business partner of ...


In the context of a cycle called Coffe&Tea Chat organized by staffingamericalatina, business partner of Staffing Industry Analysts, Bettina Schaller, President of the World Employment Confederation and Martin Padulla, Founder and MD of staffingamericalatina referred to the situation in Mexico.

Last week, the Executive Power of the Mexican Republic declared its intention to prohibit outsourcing, a word with which the staffing activity in the country is known.

During yesterday’s conversation, Bettina Schaller said that “governments should think ahead and embrace the social innovation agenda. We as a sector promote this agenda all over the world”.

“I perfectly understand  the situation in Mexico. There are companies there that are criminals. The situation is unacceptable. ILO Convention 181 on private employment agencies, in addition to regulating a sector, offers a framework in which the public sector controls that agencies comply with the regulations,” added WEC’s President.

“From now on, prohibition is not the solution. We have to find a way for companies in Mexico, which do a fantastic job training workers and providing formal jobs, to continue doing so.

During the same conversation, Martin Paulla, Founder &MD of staffingamericalatina stated “the prohibition of a sector that provides millions of formal jobs in a time of crisis that requires boosting labor markets for recovery, does not seem to be a solution but a major problem. It is necessary to ban those players who really have nothing to do with the industry and use outsourcing to commit crimes”.

In the country there are more than 4,600,000 sub-contracted jobs in different modalities (with data at the end of 2019). This scheme is a reality and a job opportunity in a country with an unemployment rate of 5.2% in which, in addition, informality exceeds that of any other member state of the Organization for Economic Cooperation and Development (OECD), with 55.1%, according to INEGI figures from August 2020.

The debate on private employment services cannot focus on their existence or disappearance but on their proper implementation and regulation.

ILO Convention 181 is a very valuable tool for addressing the issue.