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Mexican senate approves work benefits for app drivers

investing.com 13/12/2024 - 02:08 AM

Mexico City Senate Approves Reforms for Ride-Hailing and Delivery Drivers

MEXICO CITY (Reuters) – Mexico's Senate approved reforms on Thursday aimed at improving conditions for drivers of ride-hailing and delivery services such as DiDi, Rappi, and Uber, ensuring access to social security and benefits including a Christmas bonus.

The reform passed unanimously with 113 votes in favor and will be sent to the executive branch for enactment. President Claudia Sheinbaum introduced the proposal to lawmakers in early December, fast-tracking it ahead of the congressional recess on December 15.

The ruling Morena party and allies, who won a landslide majority in the June elections, have recently advanced several proposals under current and previous administrations. This latest reform aligns Mexico with countries like Chile and Spain, which already regulate work through digital platforms, ensuring basic labor rights like a minimum wage and social security.

The new regulations guarantee that workers who earn at least the minimum wage of approximately $414 per month (effective 2025) have the right to unionize and access benefits such as social security, accident insurance, pensions, maternity leave, profit-sharing, and Christmas bonuses. Workers earning below minimum wage will have limited access to benefits but are protected in case of work-related accidents.

Official figures show that about 658,000 people are employed in Mexico's digital platform sector, with roughly 41% earning more than the minimum wage. Alianza in Mexico, representing app drivers and delivery workers, has called for broader discussions as some drivers feel excluded from the decision-making process, raising concerns about potential impacts on their work flexibility, which is crucial for many part-time workers. Uber reports that around 70% of its drivers work less than 10 hours a week, often using the platform to supplement their income.




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