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  • Research report 123. Mexico: more misery and casualisation of labour

    Published the Wednesday 8 of June of 2016 2:00 am CAM No comment

    TTN-CAR-R 123

    Contents:

    INTRODUCTION [go]

    THE PRECARIOUSNESS OF THE WAGE IN MEXICO [go]

    THE MYTH OF THE RECOVERY OF WAGES BY PENA NIETO [go]

    Where is it more expensive to buy the CAR? [go]

    What size is the plunder in the consumption of salaried workers? [go]

    SOURCES [go]

    INTRODUCTION

    The Mexican State toward the end of the Decade of the seventies of the last century adopted a policy based on the repression, dispossession, exploitation and discrimination against workers. Giving priority to the interests of Capital investment, advancing in the systematization and deepening of policies of economic order in the world of work that deepened the process of precariousness of Mexican workers.

    To the serious crisis economic macro who lived in Mexico in the year of 1987, registering a galloping hyperinflationary cumulative of 159%, a devaluation of the peso of the 33%, the fall in the international price of oil to 11 dollars per barrel, Decides the Government of Miguel de la Madrid Hurtado impose the 16 in December of that same year the stability and Growth Pact (PECE); This was signed by the labour sector; Fidel Velázquez Sánchez, President of the Labour Congress, the peasant sector, Hector Hugo Olivares V., by the national peasant Confederation, Alfonso Garzón Santibáñez of the Central Campesina independent (CCI) and by the side of the business sector would be led by the business Coordinating Council.

    The Pact consisted of the imposition of labour policy measures that established caps on salary increases, subject to the increases in inflation; as well as the establishment of policies you oriented towards the Elimination of control of prices of goods and services of ordinary working-class consumption which at that time comprised the basic basket. Negatively impacting on the level of life and work of the working class.

    In relation to the criteria of wage policy assumed by the Government of the President Miguel de la Madrid Hurtado, during the year of 1987 five were recorded[1] accumulated emergency wage increases reached the figure of the 80%, at hyperinflationary rates of the 159%, representing a loss of the 70% the purchasing power of wages, that would never recover the Mexican worker.

    For the year of 1988 the implementation of the ETS product, the Government established through the national minimum wages Commission two increases in the minimum wage to address and mitigate the hyperinflationary rates reached during 1987.

    According to the agreed terms, the President of the National Commission of the minimum wage will propose an immediate increase to the productive sectors of 15 % in the minimum wages in force, extended to contractual wages, and another of 20 % exclusive to minimum wages, which will enter into force the 1 in January of 1988, on the occasion of the ordinary setting that establishes the law:

    It will propose, also, at the end of the first two months of 1988 be determined, monthly, further increases in, in accordance with the foreseeable evolution of the price of a market basket index. This will be defined, in the course of the next few days, by the Secretaries of labor and Social Welfare and of trade and Industrial development, after consultation with other sectors of the economic solidarity pact signing. The index will also include the main prices and rates for goods produced by the public sector. “.[2]

    Of 1989 to date are not known records of new monthly increases or emergency to the minimum wage to face and reverse in real terms the purchasing power of the wage loss.

    The PECE agreed the existence and implementation of a Sliding scale of wages that would recover the levels of life and work of Mexican families, which represents an old demand of the labor movement. Such a mechanism was intentionally omitted by the Government to never operate.

    The same, promised a Control of prices and supply where:

    Will be applied with special pawned and efficiency the existing price controls on the previously mentioned basic basket products. To avoid sudden adjustments of some of these prices in 1988, their deficiencies will be corrected in December of 1987. Then, only moderate increases are permitted, in accordance with the evolution of wages and prices and rates for public sector. The increased costs must be recognized with opportunity, preventing build-up of new lags. Also, the policy of prices for commodities will be consistent with the evolution of guaranteed prices.

    Strict control of prices of the basic food basket, following the above guidelines, It will be approved with a policy of slaughter that would prevent shortages and rationing. For that purpose, official and Union shops will be used. Also, to undertake timely imports of those products that are detected missing. Violators subject to control prices, as well as those who hide goods, they will be severely punished.[3] Demagogic speech. First during the presidential campaign of MMH and then, During his term the repeated slogan of his Government was "for the moral renewal of society.

    In reality today, There is no control of prices of goods, except for the price (salary) of the labour force. For example the minimum wage, by law is increased once a year (starting from the 1 January of each year).

    Even during the six years of the Government of José López Portillo, There was an official price control, of a basic basket of approximately 100 products, that control, with time disappeared.

    Today almost 30 years of the stability and Growth Pact, the results are visible, next research report is a testament to the process of precariousness of the working class in Mexico:

    Of 1987 a year 2016, Mexico has been ruled by 6 Presidents, 4 the institutional Revolutionary Party (PRI) and 2 of the national action party (BREAD), and wage policy records during these 6 six a negative trend of the purchasing power of the wage, It has not managed a recovery, together with the labor reform enshrined and imposed at the end of the 2012 under the Governments of Felipe Calderón and Enrique Peña Nieto helplessly brutally the working conditions of workers, i.e., coupled with the fall of real wages is today the annihilation of all those employment benefits that represent a cost to the employer, as they are among others profit sharing, the aguinaldo, the payment of overtime, etc.


    THE PRECARIOUSNESS OF THE WAGE IN MEXICO

    Of the 16 December of 1987 to the 25 April of the 2016, the cumulative loss of the purchasing power of the minimum wage is of 79.11 %. (See table and graph not. 1)

    Currently, 32 millions of workers in Mexico survive in different levels of misery, as a result of insufficient income to purchase the basic basket.

    Of the 16 December of 1987 to the 25 April of 2016, the price of the recommended food basket[4] (CAR) went from $3.95 to $213.46 daily. (See table no. 1)

    In reference to the evolution of the minimum wage for the period of the 16 December of 1987 to the 25 April of 2016, represents a cumulative increase of the 1028% faced with the 5304 % the price of the CAR, i.e., the ratio shows that for each peso that increases salary five weights will increase the price of the CAR, as a result of wage policies based on salary caps which have not swung between the 3 and the 4.5% annual imposed during the last six six.

    Mexican workers to acquire the CAR require an average monthly income of $6,403.80, i.e., of almost 3 daily minimum wages. According to the INEGI, 67 % of the economically active population (PEA) He works, have a daily income of up to 3 minimum wages. Today the EAP represents more than 53 millions of workers.

    Power box adq CAR R-123

    Graphic 1

    Evolucion CAR-SM 123

    The Mexican working class faces a widespread situation of precarization, which expresses itself in the deterioration of the living standards of Mexican families.

    Workers have to work longer hours to try to level your consumption. Here is an exercise to demonstrate one of the fundamental features of the Super-exploitation, which has to do with the increase in intensive and productive work to increase the wage. The category that we have used is the necessary working time (T.T.N.), which indicates the time that a worker will have to work to buy the CAR.

    For the 16 December of 1987 a worker should work 4 hours and 53 minutes to purchase all the products that make up the CAR as, for the 25 April of 2016, the same worker needed to work 23 hours and 22 minutes to buy the CAR, i.e., in a range of 29 years cuadruplico the time that was required to buy a CAR, registering an increase of the 412%. (See graphic 2)

    Graphic 2

    TTN-CAR-R 123

    Faced with this situation, workers look for alternatives in order to overcome poverty, among them we have: to) increase the hours of work; b) search for two or more jobs per worker; c) incorporate into other(s) Member(s) family to work, independently, of their age or health condition; d) migrate; accept a job unrelated to the distance and time to get it, It will improve their living conditions.

    There are millions of workers who on a daily basis, long distance move (internal migration) from your home to your work (There are also millions of workers, men and women, of all ages, who travel long distances to another country or far from their place of origin region, looking for better standards of life and work).

    The capital has stripped the worker, day by day, its free to avoiding time rest, live with family, educate yourself, carry out recreational activities.

    For the 16 December of 1987 Necessary working time (T.T.N.) to buy a kilo of tortillas was of 24 minutes. However, for the 25 April of 2016 the T.T.N. to buy a kilo of tortillas was of 1 time with 31 minutes, to increase 446%.

    Graphic 3

    TTN-Tortilla-1

    With respect to the T.T.N. to buy a kilo of Steak of beef in Mexico shows the degree of overexploitation which has been subject to the Mexican worker, moving the bottom of consumption of the worker at the bottom of the capitalist accumulation. For the 16 December of 1987 the T.T.N. required to buy a kilo of beef steak was of 5 hours with 25 minutes of a working day of 8 hours. However, for the 25 April of 2016 (still missing eight months to end the year) the T.T.N. to purchase the same product amounted to 14 hours and 46, represented an increase of 396%. I.e., the worker required to work practically a working day and 3/4 again to buy a kilo of beef steak. In this way the consumption of beef ceased to be considered as a possibility for regular consumption for working families and now became to be considered a luxury food.

    Graphic 4

    TTN-Meat-2

    THE MYTH OF THE RECOVERY OF WAGES BY PENA NIETO

    President Enrique Peña Nieto in the framework of the labour day, stated that "in December of the" 2012, to December of the 2015, the general minimum wage average accumulated a recovery in purchasing power, of 5 per cent'.[5] In this respect we can say that it is totally false. Of the 1 January of the 2013 to the 13 October of the 2015 recorded a loss of purchasing power of the wage of 9.65%[6]


    Where is it more expensive to buy the CAR?

    The observed price of the CAR to the 25 April of 2016 indicates a cost of 213 pesos per day. However, the basket price registered in the tianguis is still the point of sale cheapest, as supermarkets are maintained as places where more expensive to buy the CAR, the difference between buy in the flea markets and supermarket is of $39.48.

    Graphic 5

    Comparative

    What size is the plunder in the consumption of salaried workers?

     

    Below are a series of graphs, to illustrate the level of plunder to which we are subject workers.

    The contraction of the consumption of Mexican families is dramatic, result of wage policies and the method adopted by Governments to "competitive" a cheap and productive workforce. The purchasing power of the wage loss accumulated for the period ranging from 1987 to 2016 was of 79.11%, i.e., the purchasing power of each weight is currently equivalent to 20 cents of 1987.

    Graphic 6

    bean-April-2 2016

    Table 1

    how you see-123

    In the next research report will announce, What is the amount of the wage stripped workers in Mexico, in dollars and Mexican pesos, of 1982 to date? And what economic and socially?


    Sources:

    Federal labor law.

    National minimum wage Commission, CONASAMI.

    Ministry of labour and Social Welfare.

    Instituto Nacional de Estadística, Geography and Informatics. (INEGI)

    Chamber of Deputies.

    Instituto Nacional de Nutrición "Salvador Zubirán"

    Bank of Mexico.

    Database: CAM-UNAM multidisciplinary Analysis Center

    Results of the questionnaire on prices of commodities of the multidisciplinary Analysis Center. Raised between the 26 March and the 17 April of 2016

    [1] CONASAMI. Minimum wages.

    [2] Economic stability pact. In magazine Foreign trade. Mexico. December 1987, page. 1079.

    [3] Op Cit. p. 1081

    [4] The recommended food basket (CAR), It is a basket that was designed by Dr. Abelardo Avila Curiel of the Institute national de nutrition "Salvador Zubiran", and that is integrated by 40 food, for the daily intake of a family type of 4 Members (2 adults and 2 young). Health expenditures are not considered in the calculation of the price of the CAR, housing, dress and shoes, education, etc.

    [5] "Words for President of the United States Mexican, Mr. Enrique Peña Nieto, in commemoration of the international day of labour". Available in: http://www.gob.mx/presidencia/prensa/palabras-presidente-de-los-estados-unidos-mexicanos-licenciado-enrique-pena-nieto-en-la-conmemoracion-del-dia-internacional-del-trabajo?idiom=es

    [6] Research report 122. Mexico is exacerbated the superexploitation of working. Continuous loss of purchasing power of the wage of the 9.65% with Enrique Peña Nieto. On the internet: http://cam.economia.unam.mx/reporte-de-investigacion-122-mexico-se-agudiza-la-superexplotacion-del-trabajo-continua-la-perdida-del-poder-adquisitivo-del-salario-de-9-65-con-pena-nieto/

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    7 Answers to “Research report 123. Mexico: more misery and casualisation of labour” RSS icon

    • Reviewing the research figures, It seems to me that the Mexican economy is every day more complex administration and truly required of an owner or owners committed to Mexico to solve as soon as problem of poverty, If not in brief conflicts of great magnitude will be taken.
      A greeting to the researcher or researchers.

    • Álvaro Reynoso flowers

      It is a sadness to see data are overwhelming and the comparison more, know that your employment is precarious and more salary makes you think that we have no safe and live with the uncertainty of whether tomorrow you reach to eat and your basic needs, It is very important to add that the issue of benefits and pensions is every time more complicated and that not can aspire to that in a precarious precarious wage, I've been over thirteen years to a company in body and soul but my pattern follows to the letter this, do not give any provision, not sure and tell pension less, consumption is low and the quality of life is also very important to have this kind of data and thus know which we throw so much as new generations, Thank you.

    • A very good explanation of how have been stealing more and more to the class working and really sad and complicated the situation! Best regards

    • Isabel López

      To the see the figures, one is da has that going from bad in worst. Now to be able to feed ourselves have to work almost the 24 hours. :(

    • Gustavo Roman

      I would like to know where I can find the method or methods used to calculate the productivity of them trabajadoresya that have found some articles where mentioned that them workers Mexican are less productive that them German and in others articles mentioned to them Mexican as them more productive. Thank you

    • Congratulations, Excellent research work, If to which feature of a salary minimum insured them have affected them trends of keep bounded the growth of the wage, by the Conacosami “Commission national for the containment of the wage minimum, composed of representatives of the Government, of employers and workers.

      Would that ima

    • Fernando Martinez

      Thank you for the research.
      provides what you owe, just makes you a lot broadcasting this type of research to realize what is happening today and historically.
      I think that if this type of research llagara to all the people in general live others moments, because we know what actually is of the interest public.


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