Home Business-newBusiness AMLO is trying to close the Pandora’s box of wage demands he unleashed

AMLO is trying to close the Pandora’s box of wage demands he unleashed

by Yucatan Times
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On Thursday Feb. 28, president Andres Manuel Lopez Obrador tried to close the Pandora’s box of wage demands he helped unleash when he doubled the minimum wage along Mexico’s northern border.

His pledge to end government manipulation of unions opened the flood gates to new, more combative labor movements in a nation where unions have long been quiet, and a wave of successful strikes erupted in January at 48 export-oriented “maquiladora” assembly plants in the border city of Matamoros.

The labor unrest has now expanded to non-export factories in the city, which is across from Brownsville, Texas. Workers at local industries like bottling plants are demanding the same kind of 20 percent pay increases and $1,650 bonuses that the maquiladora employees successfully negotiated, and walkouts are threatening to spread across Mexico,

Lopez Obrador sought to cool the strike rush Thursday Feb. 28, saying that wages should rise “but we shouldn’t create an atmosphere of labor instability.”

His own actions touched off the troubles. Seeking to address decades of stagnant real wages, the president after taking office Dec. 1 doubled the daily minimum wage to 176.20 pesos (about $9.30) in communities along the U.S. border, where the cost of living is higher than elsewhere in Mexico. That set off the strikes in Matamoros because many union wage contracts in the city are indexed to minimum wage increases.

Lopez Obrador has been left to engage in damage control. He held meetings this week with leading businessmen to reassure them that his leftist administration will be business-friendly.

“My recommendation is that salaries should rise, but at the same time people should consider the companies’ situation, there should be balance. We have to preserve jobs,” the president said Thursday.

That was an apparent reference to threats by several companies to close their plants in Matamoros.

The situation has gotten so bad that Coca-Cola products are growing scarce in Matamoros stores after the local plant was hit by a strike. The local Coca-Cola bottler, Bebidas Mundiales, said some workers had hijacked delivery trucks and set up a picket line outside its plant in the city, idling about 718 workers.

The company said its workers already earn an average of about $13 a day, more than the $9.20-$10.50 that the maquiladora workers won in their strikes.

Walkouts are also spreading beyond border areas under variants of the Matamoros banner demand of “20/32” — a 20 percent pay raise and a bonus of 32,000 pesos.

A union federation representing workers at Walmart de Mexico, which is the country’s biggest retailer, said a strike is being planned at 80 Walmart stores nationwide on March 5 unless the company agrees to a 20 percent wage increase and bonuses for employee based on a percentage of the stores’ sales.


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