Mexico to propose labor reform for app drivers, delivery workers
MEXICO CITY, Oct 16 (Reuters) -Mexico will propose a labor reform for drivers and delivery workers using applications like Uber, Didi and Rappi, officials said on Wednesday.
WHY IT'S IMPORTANT
The reform would roll out a pilot program requiring companies pay into public health access for drivers earning minimum wage or above. All drivers would be insured in case they were injured on the job.
It would also require that apps have mechanisms in place before blocking drivers' accounts, with reports needing to be reviewed "by a person and not by algorithms or computers," Labor Minister Marath Bolanos said.
KEY QUOTE
"We're improving living conditions for delivery drivers in Mexico. In almost no other country does (a reform like this) exist," said President Claudia Sheinbaum.
CONTEXT
Countries have long grappled with how to regulate delivery platforms, which tend to consider drivers as independent contractors and not employees. In recent months, Hong Kong and European Union states have laid out plans to standardize regulations for apps.
BY THE NUMBERS
Around 2.5 million people in Mexico work through digital platforms, according to the "Alianza in Mexico," a group representing the apps said, citing a Buendia & Marquez study.
The government says that 658,000 people are registered with Mexico's tax agency as working on apps. Of them, some 272,000 who earn at or above the minimum wage could be eligible for labor benefits such as end-of-year profit sharing.
WHAT'S NEXT
The proposal will be sent to Congress in the next few days, Bolanos said. Mexico's ruling party and allies hold a wide majority in both chambers.
THE RESPONSE
The coalition of apps said in a statement earlier this month that it was open to contributing to the public health scheme, but requested that workers' "flexibility and independence" be at the center of future discussions regarding the reform.
Reporting by Kylie Madry and Raul Cortes; Editing by Aurora Ellis
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