The “party” economy: Mexico seeks to regulate the conditions of food messengers and distributors

Luisa Maria Alcalde, Mexico’s Minister of Labor, speaks during an interview in Mexico City, Mexico, Monday, April 22, 2019. Mexico is looking for jobs for thousands of migrants stranded at its border with the United States, Alcalde said.

Mexico is evaluating how workers’ conditions are regulated in a cooperative economy, known as “Gig”, fast growing in the country, which may involve legal changessaid the Minister of Labour, Luisa Maria Alcalde.

Alcaldi said in an interview on Thursday that the country is working with the Institute for Social Security (IMSS) and the Mexico City authorities on a plan to regulate digital platforms. He said there was no proposal yet, but there should be a clearer plan in the coming months.

App contractors around the world have lobbied for expanded hiring rights, leading the UK Supreme Court to rule that drivers at Uber Technologies Inc. They are workers who have to be paid for waiting time, and the Spanish Ministry of Labor pledges to get Social Security. Companies like Uber and DiDi Global Inc argue that the current agreement gives drivers the freedom to be their own boss and use resources that might otherwise be idle.

“There are several ways” to do this, Mayor said. “It may be incremental, for example, the search for a flexible mechanism in the MIS that does not necessarily require legislative amendment. But, also, reform of the law will be necessary to give certainty to those activities that turn out to be new.”

He said the companies have been involved in some conversations related to Social Security grants. In the self-employment economy, drivers, couriers, and food delivery staff are employed through apps created by smartphone technology companies, but workers are not considered employees.

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Prohibition of subcontracting

(Photo: Quartoscuro)
(Photo: Quartoscuro)

Last month, drivers of Uber and Lyft Inc. Major cities across the United States are on strike to demand better wages and the right to form unions, a sign of the growing struggle on the part of contract workers for more job guarantees.

in April, Mexico has banned outsourcing as part of the government’s efforts to combat tax evasion. For a long time, some companies have used independent entities to hire their workers in order to avoid payroll taxes and Social Security contributions. The new law is working, Mayor said, and major employers have recently taken in more than 2.6 million employees.

The official warned that there would be no new extension of the deadline for companies to end the outsourcing practice beyond the beginning of September.

part time job

(Photo: Twitter / LuisaAlcalde)
(Photo: Twitter / LuisaAlcalde)

Regarding the economy of temporary jobs, the minister said that the epidemic Increased demand for services such as parcel delivery, Therefore, one of the government’s priorities is to regulate the sector.

“We want to reach a point of balance,” Mayor said. “There are a lot of people who work on these apps, but they do it occasionally and only drive Uber in their spare time. It is different from subcontracting because there is no recognition of them as workers.”

Mexico recently sought to get companies to comply with its 2019 national labor law and labor rights provisions enshrined in the renewed North American Free Trade Agreement. This week, workers at a General Motors plant in Silao, Guanajuato, voted to cancel their union contract. The vote emerged as an important test case for the trade deal, following reports of worker rights abuses at the plant.

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“The auto sector and all companies are putting what happened at GM as a red light and they will take precautions, say, the necessary measures so that this phenomenon does not repeat itself,” Mayor said.

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Aileen Morales

"Beer nerd. Food fanatic. Alcohol scholar. Tv practitioner. Writer. Troublemaker. Falls down a lot."

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