Last week, Claudia Sheinbaum was elected as Mexico's first female president in a historic landslide win. Meanwhile, her party, Morena, captured not only the executive branch but also control of Congress, and state governorships and legislatures.
HR Policy Global’s Take: While President Sheinbaum seeks to govern independently of her predecessor, she is likely to continue López Obrador's worker-friendly labor and employment policies while adding new measures such as gender pay equity.
Labor and Employment Priorities of President Sheinbaum:
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Continue minimum wage boost. President Obrador increased Mexico’s minimum daily salary from US $5 (88 pesos) to US $12 (207 pesos) since taking office in 2018. Sheinbaum is expected to continue this strategy, putting pressure on companies operating in Mexico.
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Formalize the informal workers' market. Over half of Mexico's workers are informal (e.g., gig workers, with low earnings and no social security benefits. This is a widespread and ongoing issue that Obrador has attempted to solve. Sheinbaum's approach includes expanding social security to the gig economy and other types of informal workers.
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Address gender pay equity and support women. As Mexico's first female president, Sheinbaum's most significant and unique initiatives are expected to focus on promoting gender equity such as equal representation in cabinet positions, and closing the gender pay gap. There is an estimated 15.6% wage difference between men and women in Mexico, according to the Borgen project.
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Support the USMCA and unions. Sheinbaum is likely to continue supporting USMCA, the trade agreement between the United States, Mexico, and Canada, as well as promote union and worker rights through existing and future labor reforms.
Next steps: With President Sheinbaum’s expected approach to labor and employment policies, we anticipate approval of many of the proposed revisions to the Federal Labor Law under consideration in Mexico’s legislature.
HR Policy Global members will discuss her new policies during the upcoming LATAM Summit on October 24 & 25.
