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December 6, 2021
1 min read

La Cofece abandoned the worker

Social spending that is not

This is due, among other things, to the fact that there are few companies in each industry. According to the Economic Census, in 33% of Mexico’s industries, most workers only have eight possible companies in which they can work. Considering that these companies, on many occasions, are not located in the same city, this leaves the worker with very few options to work, unless they change their industry or location, something difficult and expensive. This situation reduces wages.

The Federal Competition Commission (Cofece) should be making sure to create a competitive labor market that would allow workers to increase their income, but it has not done so. In all its years of existence, Cofece has only handled one labor case, that of the footballers , a case that, in addition, does not even benefit many workers. This is a severe problem.

But still, Cofece has inadvertently allowed concentrations that have severely affected workers. For example, last year it allowed Uber will buy Cornershop Under the argument that “there is no coincidence between the main activities of both companies”, which is true if only the interests of companies and consumers are considered, but not if the interests of the worker are also considered.

In this case, Cofece, without even considering the impacts that this merger would have on workers by application, approved a concentration that to date has affected the lives of thousands of workers. Before the merger, delivery drivers could offer their services to Cornershop or Uber, causing both companies to compete on benefits. Now, they only stayed with one employer and it affected them.

The changes in the benefits that Cornershop workers receive are already evident. New Cornershop distributors are handled a different payment scheme and fare worse than the old ones. They no longer give them the bags, or at least not like before. In addition, they added samples that they have to give away, sometimes alcoholic beverages, and they no longer give them face masks as at the beginning of the pandemic.



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