In a blog post Wednesday, Coparmex, the employers’ confederation of Mexico, said a government proposal to ban outsourcing would be a blow to the economy, Mexico’s competitiveness and families. Outsourcing is a term in Mexico that can include staffing.
Last year, Mexico President Andrés Manuel López Obrador proposed banning outsourcing because of abuses by some companies.
However, Coparmex reported an estimated 4.1 million workers are in outsourcing, representing 20% of formal employment.
The organization said banning outsourcing would cause Mexico to become less competitive to other economies such as Argentina, Canada, Chile, Colombia, the US, Peru and Uruguay.
In addition, the number of people in the informal sector would increase, which would lead to lower incomes, the organization argued.