Controversial Payroll Deduction Reform Rejected by Senate

The Mexican Senate halted debate on a proposal allowing automatic wage garnishment for private debt repayment, provoking strong opposition from President Claudia Sheinbaum and labor representatives.


Controversial Payroll Deduction Reform Rejected by Senate

The Senate canceled the session to rule on the bill proposing the delegated collection reform, which would allow employers to automatically withhold workers' wages to pay debts to private financial entities. This proposal has faced rejection from President Claudia Sheinbaum, workers, and Condusef, who express concern about the negative impact it could have on workers' economy.

Morena Senator Cuauhtémoc Ochoa has been at the center of the controversy due to his dismissal for promoting this initiative, adding to a series of prior controversies in his political history. He has been accused of omissions in his asset declaration, as well as allegations of corruption, especially related to reforms in Infonavit that benefited legal firms to the detriment of the beneficiaries.

President Sheinbaum has made it clear her opposition to the delegated collection reform, insisting that workers' salaries must be respected. While recognizing the independence of senators to approve laws, she warns that she will veto the proposal if it is approved, arguing that there are other ways to ensure loan payments without resorting to mandatory payroll deductions.

Cuauhtémoc Ochoa's management has been questioned not only for the controversial delegated collection initiative but also for alleged omissions in property declarations abroad and constant changes in political affiliation, which has generated distrust in his performance as a public official. Despite his dismissal, the consequences of his decisions continue to affect thousands of workers, who have lost their assets due to massive lawsuits and millions in embezzlement.