Mexico Targets Subcontracting, Slams Tax and Worker Impacts

The Mexican government is sending legislation to Congress to clamp down on outsourcing of employees, a practice widely used by companies to limit employer obligations and evade taxes, President Andres Manuel Lopez Obrador said Thursday.

“This mechanism was created to help companies contract services, but it has broken,” the president said. Around 4.6 million Mexicans work as subcontracted labor, a figure that has grown exponentially since 2012, Labor Secretary Luisa Maria Alcalde said.

• She described a hotel where only two of 802 workers ...