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LATIN AMERICA: "Mexico: Mining and metals tax guide - May 2017" report

LATIN AMERICA: "Mexico: Mining and metals tax guide - May 2017" report. 11-page report by EY.

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back to index backLATINtalk May,  2017


How Mexico's Unions Sell Out Autoworkers

Wage contracts are inked years before plants open and workers never get a say.

At a ceremony at Mexico's Los Pinos presidential residence in July 2014, BMW Chief Executive Officer Harald Krüger pledged to spend $1 billion to build a factory in the northern state of San Luis Potosí that will employ 1,500 workers. To mark the occasion, he presented President Enrique Peña Nieto with a model of a silver BMW race car.

The German automaker had unwrapped its own gift two days earlier, a labor contract signed by a representative from the state chapter of the Confederación de Trabajadores de México (CTM), the country's largest union confederation, and notarized by a Labor Ministry official. The document, which Bloomberg reviewed, sets a starting wage of about $1.10 per hour and a top wage of $2.53 for assembly-line workers. The starting rate is only a bit more than half the $2.04 an hour that is the average at Mexican auto plants, says Alex Covarrubias, a lecturer at the University of Sonora in Hermosillo.

The paperwork was filed two years before BMW broke ground on the new plant, which will turn out $45,000 3 Series sedans. When workers begin to stream into the factory sometime next year, there's a good chance most won't know they belong to a union.

To read entire article, please click here.

Source: Bloomberg Businessweek - GAI



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