February 11, 2019
López Obrador clashes with courts after vowing 'poverty' for Mexican government
Mexican President Andrés Manuel López Obrador wants to cut salaries for all government workers in Mexico, including himself.
It’s rare for presidents to advocate for poverty, but that’s just what is doing.
At a press conference on Feb. 1, López Obrador said his government would embrace what he called “” if it would “transfer funds to the people” and achieve “development, jobs and welfare.”
Francis of Assisi was a Catholic saint who to follow Christ as a poor man.
López Obrador’s poverty vow is more bureaucratic than religious. As part of an ambitious effort to fight poverty and reduce government corruption, the president proposed to cut the salaries of public officials, including his own, and . An estimated public employees will lose their jobs.
After lawsuits were filed by and Mexico’s , the Supreme Court in December of López Obrador’s new .
Saying that even austerity budgets must guarantee the basic functioning of the government, Justice Alberto Pérez Dayán said López Obrador’s plan cannot go into effect until the Supreme Court rules on its constitutionality.
The decision has set up a standoff between the president and the courts, with Mexico’s federal budget and hanging in the balance.
Reducing inequality, one tree at a time
López Obrador and his leftist Morena Party won a in Mexico’s 2018 general election on promises that they would transform Mexico, empowering the underprivileged in a country with gaping inequality.
Since taking office on Dec. 1, López Obrador has suggested creating some 20,000 jobs in fruit production and wood harvesting by on a million acres of land in rural southern Mexico. He has also proposed paying – around US$134 – to Mexicans above the age of 68 and to people with who lack social security benefits.
Leftist governments usually fund social programs like this by raising taxes on the wealthy. López Obrador says he . Instead, his administration hopes to recover public funds by cracking down on and saving money with . That’s where the salary cuts and mass layoffs come into play.
López Obrador is an , the indigenous president who ruled Mexico from 1858 to 1872. Juárez extolled the virtues of selfless public service, public servants should “devote themselves to work assiduously while resigning to live in … honorable modesty.”
López Obrador flies commercial and has refused to take up residence in the Los Pinos presidential palace, turning it into a cultural center.
He also set his salary at a “” 108,000 pesos, about – roughly $68,400 a year. That’s 60 percent less than his predecessor, Enrique Peña Nieto, who earned in 2018.
The wage gap between average workers and the Mexican head of state was the highest in the world last year, according to a , a British financial services company. On average, Mexican workers earn around $15,311 a year.
López Obrador’s voluntary pay cut has drastically reduced the difference between his income and .
Attacks on the judiciary
Since mandates that no public official should make more than the president, however, López Obrador has also effectively capped wages for all government employees.
To his mind, that’s a good thing.
The days of having “a rich government with a poor population” are over, the president in December. He was speaking in the western state of Nayarit, pledging aid for victims of a recent hurricane.
In the same speech, López Obrador attacked the Supreme Court’s decision to suspend his pay cut plan, accusing Mexican judges – not just Justice Pérez Dayán – of selfishly wanting to keep their salaries and benefits intact.
In fact, explicitly prohibits reducing the salary of judges at any time during their appointment, a guarantee of judicial independence that .
In 2018, Supreme Court justices earned – around $14,000 a month.
The Supreme Court has since to take a 25 percent pay cut “in accordance with the new policy of austerity that the presidency has demanded of the Supreme Court of Justice.” That puts their 2019 salaries at about $10,500 a month, not including benefits.
In adopting this measure, the Supreme Court also clarified that, as an independent branch of government directly protected by the Constitution, the judiciary is not bound by the salary standards established by López Obrador. The justices will decide how to implement austerity within the court system.
Judicial battles ahead
The Supreme Court is expected to make a definitive ruling on the of the Federal Law of Public Servant Salaries some time this year.
Over in federal courts, saying salary cuts violate their labor rights. Under Mexican law, – and thus unconstitutional – if it affects the vested rights of individuals. Employers, including the federal government, cannot unilaterally reduce their employees’ wages.
At least have already been laid off under López Obrador’s austerity plan. Many of those who have kept their jobs have seen their eliminated under the new law.
Beyond its questionable constitutionality, López Obrador’s de facto salary cap on public servants does not take into account the expertise, seniority or skills required of high-level positions. Less than $5,700 a month is simply insufficient payment for the most highly skilled workers, Mexican constitutional Elisur Arteaga told the newspaper last year. He expects talent will flee the government for the private sector.
Nobody in Mexico thought that transforming the country would be easy when they voted López Obrador into office. To , fixing Mexico’s bloated and corrupt government was work for a surgeon with a scalpel.
López Obrador, it’s becoming clear, prefers a machete.
, Senior Lecturer in Human Rights, Constitutional Law and Legal Theory,
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