Mexican senate approves work benefits for app drivers

MEXICO CITY (Reuters) – Mexico’s Senate on Thursday approved reforms to improve conditions for drivers with ride-hailing and delivery services such as DiDi, Rappi and Uber (NYSE:UBER), ensuring access to social security and a Christmas bonus, among other benefits.

The reform passed unanimously with 113 votes in favor, and will be forwarded to the executive power to get enacted.

President Claudia Sheinbaum had sent the proposal to lawmakers in early December and it was fast-tracked to a plenary vote ahead of Congress’ Christmas recess on Dec. 15.

Mexico’s ruling Morena party and its allies, which won a landslide victory in the June general election, enjoy a large majority in both houses.

They have since pushed through a number of reforms proposed under the current and former administrations.

The latest 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.

It 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, official numbers show. Of these, some 41% earn more than minimum wage.

Alianza in Mexico, an organization representing driving and delivery apps including Uber, Didi and Rappi, has called for broader dialogue.

Some drivers told local media they felt left out of talks and were worried the reform would impact their work flexibility, a top priority for many part-time workers.

According to Uber, around 70% of its drivers connect for fewer than 10 hours a week, many using the app as a supplementary source of income between other commitments.