WageIndicator - The Story of Unionisation in the Mexican Gig Economy

This report was written by one of the students who joined the WageIndicator Gig team during their Internship Program. The internship also allows the interns to contribute to the news collection and create visuals to give an overview of different platform economy topics.

Introduction: Mexico is not a unionized country (mostly)

The establishment of labor unions has resulted in numerous benefits for workers globally, including higher wages, reasonable working hours, safer conditions, health benefits, and support for injuries or retirement. Labor unions play a crucial role in promoting decent work environments.

However, in certain countries, the limited presence of labor unions significantly weakens workers' bargaining power, leaving them vulnerable to the influence of large corporations.

This absence of unions has a particularly detrimental effect in the gig economy, where work remains largely unregulated.

Mexico is one such country facing this challenge. According to the Observatorio de Trabajo Digno (OTD), eight out of ten workers in Mexico do not belong to a union, resulting in more than 29 million people being disconnected from union life. In the case of the young labor force, this proportion rises to 93 percent.

The lack of a strong union presence in Mexico places it behind several other nations regulating the gig economy. This report aims to examine the history of unionization in Mexico and assess the impact of the presence or absence of unions.

It can be a starting point of a path to facilitate workers’ connections, getting them to find a collective voice and fight together towards more decent conditions.

Unions in Mexico: What is not Working?

The unionization rate in Mexico has experienced a decline, dropping from 14.5 percent in 2010 to 12.4 percent in 2020, indicating that most Mexican workers are not affiliated with labor unions. The impact of this trend is particularly pronounced among platform workers.

The country's distinct political system has influenced the history of labor unions in Mexico. Despite political transition and democratization in the late 1980s, remnants of the previous authoritarian regime persisted, especially at the regional level. National labor organizations in Mexico primarily represented workers who aligned with the prevailing ideals and the government before the 1980s.

On the other hand, independent unions and social movements encountered limitations and marginalization. Although political changes introduced pro-labor members of Congress, it took time for the dynamics of labor unions to undergo significant transformation.

The last to join the transformation was the unions and worker groups catering to platform workers, such as Ni Un Repartidor Menos y Ni Una Repartidora Menos for delivery workers, Unión De Transportistas Digitales De Michoacán for drivers and delivery partners, and other groups like Repatidores Ciudad de México and Unión de Repas.

In May 2019, the Mexican Senate approved a labour reform process, signalling a shift towards democratic and independent trade unionism.

Following this reform, the first federal-level union for platform workers was registered: in April 2021, the Ministry of Labour and Social Welfare granted union registration to the Unión Nacional de Trabajadores por Aplicación (The National Union of App Workers or UNTA). This union represents app and delivery workers and aims to advocate for improved workplace safety and the rights of platform workers.

Following the implementation of the 2019 Labour Reform in Mexico, there has been a slight increase in the unionisation rate. However, the overall number of unionised workers remains relatively low. Despite the gradual decline of trade unions over time, affiliated workers in Mexico experienced a lower degree of job precariousness than non-unionised workers. Precariousness accounts for temporary contracts, insufficient wages, and lack of job protection. Women often face fewer precarious conditions among union members, while non-unionised individuals, particularly men in similar situations, experience higher levels of job insecurity. 

Mexico's position lags significantly behind several other nations regarding labour unions for platform workers, and multiple factors contribute to the country's low unionisation rates. One crucial aspect is the negative experience associated with trade unionism in Mexico. Corrupt organisations that prioritise their own interests over defending workers have eroded trust and confidence in the union movement. This prevalent union corruption has hindered the effectiveness of labour unions in advocating for the rights and well-being of workers of all sectors. The prevailing perception of labour unions may contribute to the low rates of unionisation within the platform economy as well.

However, there are encouraging signs for the future. Both existing unions and the government have made significant efforts and taken actions to promote and encourage union membership.

Road Ahead

The 2019 labour reform in Mexico recognised the need to address the challenges posed by the digital labour platform economy as well. In response, numerous law initiatives aimed at regulating digital labour were submitted to the Mexican Senate by representatives, senators, local chambers, and the federal labour authority. These initiatives reflect various perspectives and confront the complexities of establishing labour regulations for digital platforms. While tripartite dialogues have provided spaces for discussion among platforms, workers, and government officials, platforms have been reluctant to acknowledge the existence of a formal labour relationship. 

In August 2022, 21 unions and organisations representing digital labour platform workers signed the “Minimum Floor Manifesto for Digital Platform Workers,” a declaration outlining their joint demands. These demands encompassed a range of issues, including defining digital platform work, establishing minimum wages, outlining employer obligations, addressing sexual harassment and gender discrimination, ensuring occupational safety, protecting personal data, and implementing joint vehicle registration and liability insurance. This effort comprised ten proposals. It was submitted to the Ministry of Labor in late August 2022. This collaborative endeavour reflects a collective commitment to advocating for the rights and well-being of digital platform workers in Mexico.

In January 2023, Luisa María Alcalde Luján, the head of the Ministry of Labour and Social Welfare, announced that discussions had commenced with companies, workers from different collectives, and unions to propose a reform to Congress. The objective was to address the regulation of work on digital labour platforms, which is included in the labour policy agenda for the year. The Ministry aimed to consider various aspects of this labour model during the reform process. It is essential to highlight that the Unión Nacional de Trabajadores por Aplicación), Mexico's first platform labour union, played a crucial role in shaping the Minimum Floor Manifesto and has firmly pushed to support its implementation.

Conclusions

Despite a general lack of gig workers’ engagement in union life, there’s a genuine push to grow unionism in the Mexican platform economy.

The Minimum Floor Manifesto, the UNTA's emergence, and the government’s commitment to work on a reform serve as compelling evidence of the transformative potential of unions in the national gig economy.

However, it’s undeniable that this process is taking time, and much remains to be done. The recent Fairwork report rates all platforms a 0 out of 10, meaning no fair representation is guaranteed.

It’s undeniable that organized groups at the national level and unions are gaining legitimacy in advocating for the rights and interests of gig workers; unfortunately, 500,000 people who work in the Mexican platform economy need urgent solutions to their precariousness. 

The Mexicans were protagonists in significant labor struggles during the Twentieth century. If platform workers are on the defensive now and choose not to fight for their rights anymore, hostile circumstances and lack of institutional support are to blame.

Rebuilding their trust in unions and associations is the first step. These groups need to offer better communication and transparency now more than ever. They should approach  workers with viable proposals, demonstrating their accountability.

The regulatory framework should not remain a promise but must become a consistent project. The talks the government had with the platforms and the labor reform must turn into specific revisions to protect platform workers.

Thanks to these accomplishments, platform workers might return to the field to fight for their rights and gain the results they deserve.