Authorities Look for Strategies to Close Mexico’s Wage Gap

In observance of International Equal Pay Day, Mexico's Ministry of Labor and Social Welfare (STPS) hosted the Closing the Wage Gap in Mexico meeting, led by Quia Chávez, Deputy Minister of Employment and Labor Productivity. The event brought together representatives from labor organizations, employers, legislators, and authorities to address gender pay disparity and other labor issues.

During the event, Chávez highlighted the significant strides made in labor policy over the past six years, emphasizing the commitment to continue advancing workers' rights under the administration of President-elect Claudia Sheinbaum. Chávez stressed the need for ongoing dialogue and collaboration among stakeholders, including business entities, organized labor, and international bodies, to drive further progress in transforming Mexico's labor landscape.

Public policies aimed at increasing minimum wages have reduced the wage gap by 29.1%, according to Alejandro Salafranca, Head of the Unit for Decent Work. However, unpaid household labor contributes MX$7.2 trillion (US$373.83 billion) to the national wealth, highlighting the importance of addressing care economy issues in the upcoming administration.

Salafranca also pointed out the need to invest 1.16% of GDP in wage equality policies. The informal sector contributes a 24% gender wage gap, while formal employment accounts for a 13% gap, he adds. Given that more than half of Mexico's workforce remains in informal employment, addressing this issue through formalization policies is crucial.

Another topic discussed was collective bargaining. Only 30,000 of 130,000 collective contracts have been validated, leaving a large portion of the workforce without collective agreements, which indicates room for growth in unionization to enhance employment conditions.

Geographical disparities in the wage gap were also discussed, as the gap differs considerably  between different regions such as the Bajío, northern Mexico, and southern areas. The Ministry's labor inspections, which total 40,000 annually, now incorporate gender perspectives to address these discrepancies.

A key achievement highlighted was the prohibition of subcontracting, which has positively impacted gender equality, says STPS. Following the ban, wages for workers in the IMSS saw a 27% increase for men and nearly 30% for women, addressing the wage loss previously experienced due to intermediary schemes.