Mexico's labor reform for app drivers looks poised to pass via fast-track

MEXICO CITY (Reuters) - A Mexican labor reform for drivers and delivery workers using applications like Uber (NYSE:UBER ), Didi and Rappi appears to be ready to be pushed through both chambers of the legislature next week.

The proposal, sent to legislators by President Claudia Sheinbaum this week, could make its way out of the lower house by Tuesday and to the Senate before Congress breaks for the end-of-year holidays on Dec. 15, according to documents and lawmakers.

Sheinbaum's ruling Morena party and its allies hold a wide majority in both chambers, and have been speeding through a set of reforms proposed by the president and her predecessor.

The labor reform would roll out a pilot program requiring companies to 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.

The reform should be sent to the lower house's labor committee on Friday, according to a document seen by Reuters. The committee would then vote on the bill on Monday to be sent to the floor for debate.

"If it's approved, it will be debated on Tuesday," lower house leader Ricardo Monreal told Reuters.

The Alianza in Mexico, a group representing the apps, said earlier this week that there were still issues that needed to be addressed, such as uncertainty around the tax implications of the proposal.



The Mexican government has argued it will be at the forefront of improving living conditions for delivery drivers.

"In almost no other country does (a reform like this) exist," Sheinbaum said in October.

Source: Investing.com