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Maquiladora Industry. ... The Mexican government had great interest in the maquiladora
industry as maquilas accounted for 40% of total exportations in 1992. ...
MAQUILADORAS AND THE NAFTA'S IMPACT: Introduction In this paper I will discuss
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Maquiladoras And The Nafta's I. Introduction In this paper I will discuss
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Maquiladoras And The Nafta's Impact: Introduction In this paper I will discuss
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Maquiladoras & NAFTA. MAQUILADORAS AND THE NAFTA'S IMPACT: Introduction In this
paper I will discuss the history and practices of the Maquiladora industry. ...
Submitted by simon530 on April 29, 2008
Category: Social Issues
Words: 3114 | Pages: 13
Views: 57
Popularity Rank: 110,248
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“What does the future hold for the maquiladora industry if the international pressure to improve labour rights continue to rise?”
In mid 1989, the Maquiladora industry faced a crisis in the form of a strike in Reynosa, Mexico, one of the very few border cities where the labour force was completely unionized, which meant that every worker employed in Reynosa was represented by a union. The whole strike was started with a competition between union leaders for the representation of the workers. The strike in Reynosa symbolized the evolving balance of power between organized labor, the Mexican government and business. The main parties involved were the US companies that produced in the maquiladora zone, the unions and the Mexican government.
The maquiladora concept was initially set up in 1965 to smoothen the implementation of a subcontracting industry of exportation. During the second World War, many Mexicans had crossed the border to work in the US, as the US had a shortage in domestic labour supply. Basically, the program was another way to attract Mexicans back to their home country and create jobs for them. The maquiladora industry became a free trade zone where firms do not have to pay taxes as long as their production is exported or re-exported. This means that it is not possible for production plants in the maquiladora zone to produce for the home market in Mexico.
The Mexican government had great interest in the maquiladora industry as maquilas accounted for 40% of total exportations in 1992. The maquiladora industry was certainly an important factor in the economic growth of Mexico, and therefore the government had most interest to secure the position of maquiladora factories in the Mexican industry.
However, throughout the existence of the maquiladora system more and more attention was directed to the circumstances of the workers in the plants owned by US companies. Reports showed that conditions in...
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