Mexico's Senate approved reforms unanimously to improve conditions for drivers with ride-hailing and delivery services such as DiDi, Rappi and Uber on December 12. Mexico's President Sheinbaum had sent the proposal to lawmakers in early December and it was fast-tracked to a plenary vote of Congress. After approved by the Senate, the bill will be forwarded to the executive power to get enacted.
The reform would ensure that workers who earn at least a minimum wage on an app - around $414 per month starting in 2025 - have the right to unionize and have access to benefits such as social security, accident insurance, pensions, maternity leave, the right to receive company profits, or a Christmas bonus. Workers earning less than minimum wage would not have access to all the benefits but would be protected in case of work-related accidents. Around 658,000 people are employed across Mexico on digital platforms, according to tax authority data. Of these, some 41 percent earn more than the minimum wage.
In response to the bill's stipulation that the minimum wage be used as the basis for differentiating benefits packages, Alianza in Mexico, an organization representing driving and delivery apps including Uber, Didi and Rappi, has called for broader dialogue. According to Uber, around 70 percent of its drivers connect for fewer than ten hours a week, many using the app as a supplementary source of income between other commitments. These drivers felt left out of talks and were worried the reform would impact their work flexibility.
The reform would add Mexico to the ranks of countries such as Chile and Spain that already regulate work through digital platforms, guaranteeing basic labor rights such as a minimum wage and social security. For platform companies heading to Mexico, they should promptly adjust the benefits of workers in accordance with the latest labor bill in order to safeguard their operations in a legal manner.