Mexico Senate approves work benefits for app drivers

Mexican senate approves work benefits for app drivers

2024-12-13 07:59:31 :

MEXICO CITY, Dec 12 (Reuters) – Mexico’s Senate approved a reform on Thursday aimed at improving working conditions for drivers of ride-hailing and delivery services such as Didi, Rappi and Uber, ensuring they receive social security and Christmas bonuses, among other things Welfare.

The reform passed unanimously with 113 votes in favor and will be submitted to the executive for implementation.

President Claudia Sheinbaum sent the proposal to lawmakers in early December for a quick floor vote before Congress takes its Christmas recess on Dec. 15.

Mexico’s ruling Morena party and its allies won a landslide victory in June’s election, giving them majorities in both houses of Congress.

They have since pushed through a number of reforms proposed by the current and previous governments.

The latest move would see Mexico join the ranks of countries such as Chile and Spain that already regulate work through digital platforms, guaranteeing basic labor rights such as minimum wages and social security.

It would ensure that workers who earn at least the minimum wage (about $414 per month starting in 2025) through the app have the right to join a union and receive benefits such as social security, accident insurance, pensions, maternity leave, and the right to receive company profits or Christmas Festival bonus.

Workers earning less than the minimum wage would not receive all benefits but would be protected in the event of a work-related accident.

Official data shows that around 658,000 people across Mexico are employed through digital platforms. Of these, about 41% earned more than the minimum wage.

Mexico’s Alianza, a group representing driving and delivery apps such as Uber, Didi and Rappi, called for a broader dialogue.

Some drivers told local media they felt left out of negotiations and worried the reforms would affect their job flexibility, a priority for many part-time workers.

According to Uber, about 70% of drivers spend less than 10 hours online per week, with many using the app as a supplementary source of income outside of other jobs. (Reporting by Diego Ore and Stefanie Eschenbacher; Writing by Sarah Morland; Editing by Aida Pelaez-Fernandez and Sonali Paul)

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