In Tamaulipas, the phenomenon of digital platform work is no longer secondary. It is estimated that around five thousand people provide services as delivery people, drivers and App operators, although specialists warn that the actual number could be higher due to the lack of precise records.
Since June 24, with the entry into force of the new Labor Reform, these workers have access to Social Security, to the Infonavit [National Workers’ Housing Fund Institute] and to labor rights, defining a before and after in a sector that had operated in semi-formality up to now.
“The government’s objective is to move from a semi-formal type of employment to fully formal employment”, explained Claudio Martínez, partner at the De la Vega & Martínez Rojas Firm.
He added that this change also means that, for the first time, the status of a worker is defined based on a minimum monthly income, at least equivalent to the minimum wage currently in effect.
Registration in the Mexican Social Security Institute grows.
At the national level, the Mexican Social Security Institute (IMSS), reports 1,260,025 registered workers, 17% of which work in more than one platform, while 83% are linked exclusively to one App.
“Although there is no official broken-out data for Tamaulipas, profiles are not far from the average: men under 30 predominate, a testimony of the attractiveness of these platforms for young people looking for quick job options”, Martínez explained.
The Reform also recognizes the right to unionize, something that the specialist considers to be an important step, although a complicated one in practice: “ The discontinuous nature of these jobs makes it hard to maintain a union with stable representativeness, as the number of active workers changes constantly.”
Companies are absorbing higher social security costs.
At the economic level, the impact is starting to be felt. Companies are absorbing higher social security costs, and part of this expense is being passed on to users through increases in fees.
In cities like Tampico, Reynosa and Nuevo Laredo, users are already reporting increases in the prices of Uber and Didi since July, under the reasoning of “adjustments due to compliance with the Reform.”
The law also introduced the concept of net income, which does not take into account tips nor certain operating expenses for social security purposes. Currently, 60% of the gross income is not taken into account in the calculation; this percentage will be adjusted gradually in order to balance the burden between companies and workers.
Economist Pablo Reyna pointed out that, with this change to the Federal Labor Law, platform workers will have more rights, but also new tax responsibilities: “It will affect them because they will have to pay taxes”, he warned.
What are some of the recommendations and challenges that Pablo Reyna disclosed?
The economist made the following recommendations:
- For companies:
To strictly comply with the regulation, to make algorithms transparent and to keep clear records of income and hours.
- For workers:
To be well-informed about their rights, focus on one platform in order to meet the minimum required income and avoid working for multiple Apps simultaneously, in order to reduce legal and safety risks.
- For users:
To understand that tips are not part of the base salary and that fee increases are directly related to the formalization of this sector.
Implementation is at the pilot program phase, which will become the basis for the final version of the regulation, scheduled for December 24.
“It is a trial and error process; the challenge will be to adjust the regulation to protect workers without affecting the economic viability of platforms”, Claudio Martínez concluded.
