MEXICO CITY (Reuters) – Mexican senators on Tuesday voted to approve a contentious bill aimed at sharply limiting companies’ ability to subcontract labor, the final step for the initiative to pass into law.
Mexico’s government had reached a deal with business and labor representatives earlier this month over the draft bill, which had caused concern in the private sector in both Mexico and the United States.
The government of President Andres Manuel Lopez Obrador has said that, historically, outsourcing in Mexico had not provided adequate guarantees for workers’ rights.
But business groups have warned that a plan overly restrictive for companies could end up costing the country jobs.
(Reporting by Noe Torres; Writing by Daina Beth Solomon; Editing by Chris Reese and Marguerita Choy)
