By Diego oré adn aida Pelaez-Fernandez
MEXICO CITY (Reuters) – Mexico‘s Chamber of Deputies approved on Tuesday a reform that aims to regulate the working conditions of delivery drivers and drivers who work for apps such as DiDi, Rappi and Uber (NYSE:), ensuring access to social security benefits. and a christmas bonus,among other benefits.
The general reform was approved unanimously, with the favorable vote of all 462 parliamentarians present, after a debate that lasted two hours. Deputies than discussed the specific terms of the law before it was sent to the Senate, which will have to vote on any changes.
The ruling Morena party and it’s allies,which won a landslide victory in June’s general elections,enjoy large majorities in both chambers. Since then, they have accelerated a series of reforms proposed by the current and previous governments.
The reform would place Mexico alongside countries like Chile and Spain, which already regulate work through digital platforms, guaranteeing fundamental labor rights such as minimum wages and social security.
According to data from the tax authority, around 658,000 people are employed on digital platforms throughout Mexico.Of these, approximately 41% earn more than the minimum wage.
Opposition Institutional Revolutionary Party (PRI) lawmaker Ana Isabel González said the reform must include safeguards that protect against violence against women, such as a crackdown on the creation of false profiles.
The legislation would ensure that workers earning at least the minimum wage on the app (about $414 a month starting in 2025) have the right to unionize and access benefits such as Social Security, accident insurance, pensions, maternity leave , entitled to receive a share of the company’s profits and a Christmas bonus.
Workers earning less than the minimum wage would not have access to all these benefits,but would be protected in the event of workplace injuries.
(Reporting by Diego Ore and Aida Pelaez-Fernandez)
How does the regulation of the gig economy in Mexico compare to similar initiatives in other countries?
Interview with Labor Reform Expert: Regulating the Gig Economy in Mexico
By Time.news Editor
Q: Thank you for joining us today. Can you start by explaining the recent reform approved by Mexico’s Chamber of Deputies regarding delivery drivers and app-based workers? What does this reform aim to achieve?
A: Thank you for having me. The reform, wich received unanimous approval from all 462 parliamentarians present, aims to regulate the working conditions of delivery drivers and drivers working for platforms like DiDi, Rappi, and Uber. It ensures that these workers gain access to essential social security benefits, a Christmas bonus, and other compensations. Essentially, this legislation is designed to afford gig economy workers the same rights and protections that traditional employees receive.
Q: This reform places mexico alongside countries like Chile and Spain in terms of regulating work through digital platforms. What are the core implications of this alignment for workers and businesses in Mexico?
A: Aligning with international standards represents a important step toward protecting workers in the gig economy. For workers, this means guarantees such as minimum wages, social security, and even the right to unionize.This robust framework is vital for workers’ rights, as it provides a safety net that previously did not exist. For businesses, in turn, it ensures compliance with national labor laws, promoting fair competition as all players must adhere to these regulations, which will likely lead to a more organized and responsible market overall.
Q: The opposition has raised concerns regarding the safety of workers, notably women. How might the legislation address such issues?
A: That’s a crucial point. Lawmaker Ana Isabel González has highlighted the need for safeguards against violence, especially considering the prevalence of gender-based issues in gig work.While the current reform establishes rights and benefits, it will also require additional measures to address safety concerns, such as combating the creation of false profiles on these platforms. this is an vital conversation and will likely be a focus in the Senate discussions, ensuring that the reform covers not just economic rights but also physical safety for workers.
Q: Can you provide insights on the percentage of workers involved in the gig economy and the potential impact of the minimum wage stipulation set for 2025?
A: Based on data from the tax authority, there are about 658,000 individuals employed through digital platforms in Mexico. Approximately 41% of these workers currently earn above minimum wage, which is indicative of a flourishing segment of the workforce. Setting the minimum wage at around $414 a month starting in 2025 will help uplift many workers who fall below this threshold. Though, it’s also vital that those earning less have protections related to workplace injuries, ensuring that the reform offers a safety net for all workers, not just those who meet the minimum criteria.
Q: What practical advice would you offer to gig workers as they navigate this upcoming change in legislation?
A: My advice to gig workers is to stay informed about the developments in the legislation as it progresses to the Senate.They should actively engage with advocacy groups, which can provide support and resources during this transition. Additionally, workers should begin to document their work conditions and any issues they face, as this details can be instrumental in shaping future protections and policies. understanding their rights once the legislation is in effect will empower workers to advocate for themselves and ensure that they receive the benefits they are entitled to.
Q: what do you see as the broader impact of this reform on the gig economy in mexico?
A: The broader implications of this reform are profound. It establishes a legal framework that ensures workers in the gig economy have access to fundamental rights and protections,which could serve as a model for other countries in Latin America. This legislation has the potential to improve the quality of life for gig workers, reduce exploitation, and ultimately contribute to a more sustainable and equitable labor market as it evolves. The success of these reforms will depend on their implementation and the commitment of both our lawmakers and the digital platforms to adhere to the new standards.
End of Interview
