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Mexico's lower house approves unanimously labor reform for app workers

investing.com 10/12/2024 - 21:03 PM

Mexico's Lower House Approves Labor Reform for Delivery Workers

By Diego Oré and Aida Pelaez-Fernandez

MEXICO CITY (Reuters) – Mexico's lower house on Tuesday approved a reform aimed at regulating labor conditions for delivery workers and drivers affiliated with apps like DiDi, Rappi, and Uber, ensuring access to social security and a Christmas bonus among other benefits.

The general reform was passed unanimously with all 462 lawmakers present voting in favor after a two-hour debate. After that, deputies discussed the specific terms of the law before it proceeds to the Senate for further voting on any changes.

The ruling Morena party and its allies, who secured a landslide victory in the June general election, hold a significant majority in both legislative houses. Since then, they have expedited a number of reforms proposed during current and previous administrations.

This reform positions Mexico alongside countries like Chile and Spain that already regulate work via digital platforms, guaranteeing essential labor rights, including minimum wage and social security.

Labor Minister Marath Bolanos celebrated this legislative step, emphasizing that it balances flexibility with labor rights. He stated the law would provide certainty for the business model of delivery apps.

According to tax authority data, around 658,000 individuals work on digital platforms in Mexico, with about 41% earning above the minimum wage.

Opposition Institutional Revolutionary Party (PRI) lawmaker Ana Isabel Gonzalez suggested that the reform should include measures to protect women from violence, including tackling the issue of fake profiles.

The legislation guarantees that workers earning at least the minimum wage on the app (approximately $414 per month starting in 2025) will have the right to unionize and access benefits like social security, accident insurance, pensions, maternity leave, profit-sharing, and a Christmas bonus.

Workers earning below the minimum wage would not have access to all benefits but would be protected in cases of work-related accidents.

President Claudia Sheinbaum introduced the proposal to lawmakers in early December, and the law was fast-tracked for a plenary vote ahead of Congress' Christmas recess on December 15.




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