Specialists agree that Mexican workers are in relatively better conditions as compared with 10 years ago due to increases in the minimum wage and labor reforms initiated during the previous presidential term.
Although they acknowledge that much remains to be done, they emphasize the importance of taking a pause in the labor reforms, in view of the circumstances of uncertainty and economic deceleration, such as those related to the reduction of the workweek, and providing more support to economic units to assimilate the changes, particularly to micro and small companies, who are the main employers in the country.
Approximately 5.5 million companies exist in Mexico, employing about 27.8 million people. Micro and small companies, who employ up to 50 workers per unit, comprise 5.4 million units and employ 16.6 million workers, representing 56.3% of the total, according to the 2024 Economic Census.
Jobs generators. Source INEGI
Achievements to this date are highly commendable for the benefit of the workers, but a detailed analysis of the budgetary issue faced by micro and small companies is also necessary, aimed at sustaining and encouraging formal employment, stated Oscar de la Vega, labor lawyer and managing partner of the De la Vega & Martínez Rojas law firm.
“The situation of micro and small companies must be analyzed to keep up the generation of the formal employment needed by millions of Mexicans, especially now considering the large number of compatriots returning to Mexico, expelled from the United States,” added the specialist.
He considers that reforms such as the reduction of the workweek from 48 to 40 hours, which is included in the agenda of President Claudia Sheinbaum, and is currently under review in the Chamber of Deputies, should remain on hold, analyzing and listening to stakeholders, and allowing the feasibility of companies, to address this reduction efficiently.
“The message is that small, medium or large companies must prepare to meet the new labor challenges we are facing. We shall emphasize that companies must change their strategies, as what worked before is no longer effective within the current legal framework”, stated Oscar de la Vega.
“The economy is experiencing a situation of considerable uncertainty, and this will inevitably impact employers’ investment programs. We must seek alternatives to maintain the competitiveness of companies in the country, and continue being part of the North American market,” stated the labor lawyer.
In turn, German de la Garza, managing partner of the Fisher Philips law firm, stated that the uncertainty faced by companies does not create proper conditions for investment, and the absence of investment naturally results in a lack of encouragement for growth and employment, leading to the disappearance of existing positions.
