Mexico's Calderon makes new push for reform of labor laws

Reuters ^ | September 2, 2012 | Dave Graham and Miguel Gutierrez

[JerseyanExile]

Mexican President Felipe Calderon sent a new proposal to liberalize the country's antiquated labor laws to lawmakers on Saturday as he seeks to fast-track the legislation before leaving office at the end of November.

Calderon's draft bill, submitted at the start of the new Congress by Interior Minister Alejandro Poire, is aimed at helping spur stronger growth in Latin America's second biggest economy.

Agreeing on labor reform has long proved difficult in Mexico, and the proposal could be a litmus test of how the PRI and Calderon's conservative National Action Party, or PAN, cooperate in the new Congress, which lasts three years.

The two parties were close to a deal on labor reform last year until the PRI ended up withholding approval for tactical reasons before a string of important elections.

Pena Nieto, who takes office on Dec. 1, has been at pains to show his readiness to reach consensus with other parties after he fell short of a majority in Congress in the July 1 elections.

PAN Senator Hector Larios said the draft labor law would seek to improve the transparency of Mexico's trade unions, the support of which the PRI has relied on for years.

PRI lawmakers close to the unions have repeatedly signaled they will resist certain changes to unions' rights, so the proposal could face tough negotiations in Congress.

The bill also seeks to make labor regulations more flexible and contains elements put forward by other parties, Larios added.

Labor reform, along with an effort to widen the tax base and allow more private investment in state oil giant Pemex have been the three main items on Pena Nieto's economic agenda.

[doc1019]

Mayhap all his reforms will suck all the illegal Mexicans back into Mexico?

[Jane Long]

But will they offer the laborers free healthcare, education and welfare?