Mexico will propose a labour reform for drivers and delivery workers using applications like Uber, Didi and Rappi, officials said on Wednesday.
The reform would roll out a pilot program requiring companies 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.
It would also require that apps have mechanisms in place before blocking drivers’ accounts, with reports needing to be reviewed “by a person and not by algorithms or computers,” Labor Minister Marath Bolanos said.
“We’re improving living conditions for delivery drivers in Mexico. In almost no other country does (a reform like this) exist,” said President Claudia Sheinbaum.
Countries have long grappled with how to regulate delivery platforms, which tend to consider drivers as independent contractors and not employees. In recent months, Hong Kong and European Union states have laid out plans to standardize regulations for apps.
Around 2.5 million people in Mexico work through digital platforms, according to the “Alianza in Mexico,” a group representing the apps said, citing a Buendia & Marquez study.
The government says that 658,000 people are registered with Mexico’s tax agency as working on apps. Of them, some 272,000 who earn at or above the minimum wage could be eligible for labour benefits such as end-of-year profit sharing.
The proposal will be sent to Congress in the next few days, Bolanos said. Mexico’s ruling party and allies hold a wide majority in both chambers.
The coalition of apps said in a statement earlier this month that it was open to contributing to the public health scheme, but requested that workers’ “flexibility and independence” be at the centre of future discussions regarding the reform.
