Mexico president-elect hails passage of public sector pay cuts

MEXICO CITY (Reuters) – Mexico’s President-elect Andres Manuel Lopez Obrador on Friday hailed steps by the brand new Congress to chop the salaries of presidency officers, a part of a raft of measures he promised to battle corruption and inequality.

Mexico’s President-elect Andres Manuel Lopez Obrador arrives to his marketing campaign headquarters in Mexico City, Mexico September 13, 2018. REUTERS/Henry Romero

Driven by Lopez Obrador’s leftist National Regeneration Movement (MORENA), the decrease home of Congress late on Thursday handed a regulation that may cap all salaries for officers on the president’s wage or beneath.

Lopez Obrador, who takes workplace on Dec. 1, received a landslide victory in July after pledging to save lots of billions of {dollars} by way of anti-corruption and austerity measures to fund scholarships for college kids, pensions for the aged and infrastructure tasks in Mexico’s poor south.

MORENA and its allies have a majority in each homes and made passing the wage invoice their first legislative precedence because the new Congress started in September.

“We’re going to decrease the salaries of these on high as a result of this manner we are able to save with a purpose to attend to the calls for of justice,” Lopez Obrador mentioned at a city hall-style assembly on safety in Mexico City.

Lopez Obrador vowed to chop his personal wage to 40 p.c of what outgoing President Enrique Pena Nieto earns to 108,000 pesos ($5,718) monthly – a sum properly beneath many high-paying authorities jobs within the present administration.

He has additionally promised to waive his bodyguards and promote the presidential jet in addition to a fleet of presidency plane. New lawmakers are additionally making a present of slicing spending.

Earlier this week, the brand new head of the Senate, MORENA’s Marti Batres, launched a “Tupperware Challenge” on social media, the place he requested lawmakers to convey their very own lunch somewhat than benefit from government-funded meals at their places of work.

Some opposition lawmakers ridiculed the transfer as a populist stunt.

Local media have reported the cuts might hit round 35,000 officers at the moment incomes greater than Lopez Obrador’s proposed wage.

Lawmakers from smaller events warned the transfer might result in an exodus of officers from well-paid technical jobs in key ministries akin to communications, power and finance.

A invoice stipulating that no public sector employee ought to earn greater than the president was accepted by the Senate seven years in the past, however was not taken up below Pena Nieto’s administration.

On Friday, Lopez Obrador additionally mentioned the invoice would enable him to satisfy one other marketing campaign promise – to finish beneficiant pensions loved by former Mexican presidents.

Reporting by Veronica Gomez and Michael O’Boyle; Editing by Marguerita Choy

Original article http://feeds.reuters.com/~r/Reuters//~3/cEaNpp-86gs/mexico-president-elect-hails-passage-of-public-sector-pay-cuts-idUSKCN1LU2KW

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