Reforms Raise Informal Employment in Mexico Patricia Munoz Rios - La Jornada
go to original February 23, 2014

Structural reforms have started to impact the employment rate for 2014, since this year unions are negotiating for more than just salary and benefits; they’re bargaining for there to be no cuts, for staff to be maintained, and for contracts not to be modified.

The Workers Union of the National Autonomous University of Mexico (STUNAM) and the Mexico Alliance of Trolley Car Workers (ATM) noted that the reforms are now starting to affect workers in various ways. First of all, they said, formal contracts for workers ended at the beginning of the year, both in the public sector and among businesses, making effects from budgetary changes to the payrolls visible.

The organizations agreed that informal employment is growing once again, while salary and contractual negotiations in the formal employment sector have been under great pressure and are more difficult due to the increase in the cost of labor induced by the fiscal changes.

Read the rest at Mexico Voices

Translated by Chris Brown

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