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Maquiladoras at a Glance

CorpWatch
June 30th, 1999

The Border (map and general regional statistics)
Industry Breakdown (pie chart)
Country of Origin (bar chart, Tijuana Only)
Worker Profile (gender statistics)
Wages (minimum wage comparison)
Market Basket (food basket and standard of living)
Environment (population projections, environmental health, factoids)

Maquiladoras at a Glance
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File Size: 177Kb/13 pages



Definition of Maquiladoras

Foreign-owned assembly plants in Mexico. Companies import machinery and materials duty free and export finished products around the world. They are also known as twin plants, maquilas and in-bond industries.



The US-Mexico Border

(Click on a border state in Mexico to view statistics.)


Industry Breakdown

Maquiladora Labor Force by Branch of Industry

(Data is current as of September 1998, INEGI - National Institute of Statistics - Source: The Maquiladora Reader)

 

 

Pie Chart of Maquiladora Labor Force by Branch of Industry

 



Country of Origin - Tijuana Maquiladoras Only

(Source: San Diego Union Tribune, Business Section, C-1, April 20, 1999)

Chart of the Country of Origin for Maquiladoras in Tijuana




Examples of Maquiladoras in Mexico

  • 3 Day Blinds
  • 20th Century Plastics
  • Acer Peripherals
  • Bali Company, Inc.
  • Bayer Corp./Medsep
  • BMW
  • Canon Business Machines
  • Casio Manufacturing
  • Chrysler
  • Daewoo
  • Eastman Kodak/Verbatim
  • Eberhard-Faber
  • Eli Lilly Corporation
  • Ericsson
  • Fisher Price
  • Ford
  • Foster Grant Corporation
  • General Electric Company
  • JVC
  • GM
  • Hasbro
  • Hewlett Packard
  • Hitachi Home Electronics
  • Honda
  • Honeywell, Inc.
  • Hughes Aircraft
  • Hyundai Precision America
  • IBM
  • Matsushita
  • Mattel
  • Maxell Corporation
  • Mercedes Benz
  • Mitsubishi Electronics Corp.
  • Motorola
  • Nissan
  • Philips
  • Pioneer Speakers
  • Samsonite Corporation
  • Samsung
  • Sanyo North America
  • Sony Electronics
  • Tiffany
  • Toshiba
  • VW
  • Xerox
  • Zenith


Worker profile

Silhouette of a Woman

No. of Women Working in the Maquiladora Industry: 472,423

"In the early days women made up as much as 80% of the assembly plant workforce, today they number close to 60%. While they can legally be hired at the age of 16, it is common for these girl-women to get false doucments in order to go to work at ages as young as 12, 13 or 14." (Mexican Labor News & Analysis, 3/2/1999, v4, no4)


Wages

Minimum Wage
Mexico - $3.40 per day vs. US - $5.15 per hour

Example: Hourly compensation costs for production workers in manufacturing
Mexico - $1.21 vs US - $17.70

(Global Trade Watch, The NAFTA Index, October 1, 1998)

Market basket

Credit: Information as provided by Auto Trim de Mexico S. A. de C. V workers

Type of employment: Worker from Auto Trim de Mexico S. A. de C. V
Work Schedule: 40 hours per week
Daily wage: $8.29
Minimum wage (Geographic Area A): $3.44 per day
Wage per hour: $1.04
Weekly salary: $58.09
Discount for union dues (4%): $2.32
Net pay: $55.77


Amount leftover per week for clothes, shoes, entertainment and medical attention: $2.03


Market Basket Factoids:

"According to the December 16, 1998 issue of Mexican Labor News and Analysis, in 1987 a worker had to work 8 hours and 47 minutes to buy the basic food basket for a family of four. Today it takes 34 hours."

"In November of 1998, the Zedillo Administration removed all subsidies for the purchase of tortillas, resulting in a 100% price increase for Mexican consumers. The average Mexican consumer will now only be able to afford of the normal amount of tortillas they would usually purchase."

"In December 1998, the Mexican government increased the minimum wage by 14%. However, government figures show that the consumer price index rose 18.6% in 1998. Mexican government statistics show that real wages have dropped to a 30-year low and are likely to sink even further as the 1999 budget takes effect."

Coalition for Justice in the Maquiladoras Annual Report 1998, Newsletter Vol. 9, No. 1, Spring 1999. Pg. 13

2-Person Household
(single income)

Food

$US

Bread

.80

Sugar

.70

Rice

.69

Beans

.94

Oil

1.06

Consume

.59

Soup paste

.38

Tortillas

2.80

Eggs

2.08

Ham

2.79

Sausage

1.39

Potatoes

1.29

Onion

0.77

Tomato

1.15

Pepper

.39

Salt

.14

Soft drink

3.85

Water

1.60

Detergent

1.29

Soap

.42

Toothpaste

1.24

Toilet paper

.57

TOTAL

26.90


Fixed Weekly Expenses

Food

26.90

Butane

1.50

Rent

10.00

Electricity

3.00

Transportation

3.00

Refrigerator

7.30

Water

2.00

TOTAL

54.00



The Environment

Population Border County and Municipio Population Projections

Source: Southwest Center for Environmental Research and Policy (SCERP), Border Environment Research Reports, No. 5, May 1999

1995 Population

2000 Population

2010 Population

2020 Population

High Projections

Border total

US subtotal

Mexican subtotal

10,585,265

5,827,439

4,757,826

12,376,232

6,535,848

5,840,384

17,144,395

8,304,648

8,839,747

24,099,054

10,671,306

13,427,748

Medium Projections

Border total

US subtotal

Mexican subtotal

10,585,265

5,827,439

4,757,826

12,145,349

6,438,616

5,706,733

15,397,768

7,604,430

7,793,338

19,460,216

8,957,028

10,503,188

Low Projections

Border total

US subtotal

Mexican subtotal

10,585,265

5,827,439

4,757,826

11,452,700

6,146,918

5,305,782

13,285,313

6,757,453

6,527,860

15,186,177

7,333,809

7,852,368



Photo: Mike Matejka, http://www.naftalawsuit.org/enviorpict2.html

Water

"Surface and groundwater supplies are threatened along the US-Mexico border due to the dumping of raw sewage, agricultural runoff, and industrial and hazardous waste pollution... All streams and rivers in the border region have suffered deterioration of water quality due to the lack of adequate municipal wastewater collection and treatment systems. The current infrastructure deficit is enormous, and the added demand created by growing populations will be significant."

(SCERP report, May 1999)

 



"Contamination of the Rio Grande River during NAFTA has been well documented. Extensive testing has revealed that extreme fecal contamination leaves border residents at risk for Hepatitis A. According to the Texas Department of Health, since NAFTA went into effect the Hepatitis A rate for Cameron County shot up from 17.8 per 100,000 residents to 87.4 per 100,000 an increase of almost 400%. The Hepatitis A rate for Maverick County increased by 122% since 1993. Webb County's rate also increased by 78%."

(NAFTA at 5, Global Trade Watch)

 



Air

"According to the EPA, border area residents are exposed to health-threatening levels of air pollutants, including carbon monoxide. The following US border areas exceed ambient air quality standards: El Paso, TX; Dona Ana County, NM; Imperial County, CA; San Diego, CA; Douglas, AZ; Nogales and Yuma, AZ."

(NAFTA at 5, Global Trade Watch)

 



Environmental Health

"The neural tube defect rate per 10,000 babies in Cameron County, TX was 9.08 in 1997 and 19.94 in 1998. This is almost twice the national average."

(The NAFTA Index, October 1, 1998)

 



"The [Texas] Department [of Health] recently declared that, 'the entire border area remains a high-risk area [for neural tube defects] compared to the rest of the US.'"

(NAFTA at 5, Global Trade Watch)

 



Hazardous Waste/Sewage

"Each day, 130 million gallons of industrial waste, agricultural runoff, slaughterhouse remains and raw sewage enter the New River from the Mexicali Valley."

(California NAFTA at 5, Global Trade Watch)

 

"Under NAFTA, maquiladora employment increased by 54% in Ciudad Juárez, spurring significant population growth. Yet Juárez still has no waste treatment facility to treat sewage produced by the 1.3 million people who now live there."

(NAFTA at 5, Global Trade Watch)