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Norteamérica

On-line version ISSN 2448-7228Print version ISSN 1870-3550

Abstract

GARCIA, Humberto; CARRILLO, Jorge  and  BENSUSAN, Graciela. Wage Precariousness in Mexico’s Auto Industry. Pending Gaps in the USMCA’s New Labor Governance. Norteamérica [online]. 2022, vol.17, n.2, pp.93-116.  Epub Apr 28, 2023. ISSN 2448-7228.  https://doi.org/10.22201/cisan.24487228e.2022.2.559.

Given the possibility that an auto company established in Mexico can be accused of social dumping if it does not respect USMCA rules and domestic norms for union freedom and negotiation, which demand unions be representative and workers support collective bargaining, it is to be expected that future negotiations will establish explicit criteria aimed at recouping wages. In this context, it is important to consider how high wages should go to eliminate precariousness in the auto industry. Given the wage heterogeneity among the different companies derived from both regional traits and different levels of technology and product segments, this article asks how generalized or specific fixing wages should be in future union negotiations. To answer the question, the authors compare living wages calculated for companies in different regions with different countries of origin, years of operation, market segments, and production volumes. Based on this exercise, they identify the wage gaps that can serve as references in negotiations under the new USMCA labor norms. The article makes an ad hoc adaptation of Anker and Anker’s 2017 living wage methodology for plants in Aguascalientes (Nissan I and II), Hermosillo (Ford), Puebla (VW), San Luis Potosí (General Motors), and Toluca (Chrysler-Fiat), calculated for 2017 and 2019.

Keywords : auto industry; living wage; wage precariousness; USMCA; Mexico.

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