Outsourcing Companies Association Conducts GINGroup Inquiry – Latest News, Breaking News, Top Headlines

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“Our role as an association is not to target illegal outsourcing companies. But a consortium of this size won’t get where it is in a single year. We are pleased that the government is making progress in the fight against tax evasion from an outsourcing perspective. Not everything is a criticism of the government for how good it was (arrest warrant against Beyruti), even without the labor reform! ”Says Héctor Marquez Pitol, President of AMECH.

So far, Walmart, Ford and Softek, companies that have used the outsourcing services offered by the group, have terminated their contracts. In this regard, Marquez recommends that employees change their company name without losing seniority.

Tackling bad practices related to outsourcing is one of the cornerstones of the subcontracting reform proposal that the association presented to the Ministry of Labor earlier this February. Márquez reiterates that they agree with the agency investigating large cases like the GINGroup, but there is also a need to pay attention to small businesses.

Separately, Ricardo Martínez Rojas, founding partner of the law firm De la Vega y Martínez Rojas, mentions that the authorities have not audited this type of company for years, which also have contracts with no employees. Or workers who are registered in cooperatives, corporations, unions, fees or sales agents, systems that lend themselves to tax fraud.

According to the specialists consulted, one of the most common modalities of illegal outsourcing is for a company to register its employees with a minimum wage or two in front of the Mexican Social Security Institute (IMSS). In practice, however, in practice they receive a salary of more than a month. And that doesn’t depend on the size of the company, although it is more visible in large groups like the GINGroup.

The current government has started a struggle to regulate the number in the country. The executive even proposed removing subcontracting to avoid tax evasion and sanctioning companies that created “their goldmine” through illegal subcontracting. For their part, companies have emphasized the need to eliminate fraudulent practices.

Last December, AMECH conducted a survey of its employees and customers to find out what they will do when the outsourcing number goes away. 30% said they would give their employees a basic job, but without a raise they would just change their company name.

It is estimated that 60% to be recruited under the title of independent professional, ie without social security. With 4.6 million outsourced workers, Márquez warns that at least 460,000 jobs will be lost because not all companies have the cash flow or infrastructure to adopt these hires.

The outsourcing reform has not yet been defined. The arrest of Beyruti was a clear message from the government, while reform negotiations are pending, but a priority.