Mexico raises its minimum wage to £3.56 a day

Increase not enough to meet worker's basic needs, National Human Rights Commission warns

Samuel Osborne
Thursday 23 November 2017 14:33 GMT
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Mexico's poorest workers will earn at least 8 pesos more a day
Mexico's poorest workers will earn at least 8 pesos more a day

Mexico will raise its minimum wage by ten per cent next month, President Enrique Pena Nieto announced.

Starting in December, Mexico's poorest workers will earn at least 88.36 pesos (£3.56) a day, up from 80.04 pesos (£3.22).

But the increase isn't enough to meet the basic needs of a single worker or a family, Mexico's National Human Rights Commission has warned.

The commission said the minimum wage falls short of what is needed to meet a worker's basic food, shelter and clothing costs.

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The increase of just of eight pesos is unlikely to satisfy US and Canadian negotiators working on the North American Free Trade Agreement (Nafta) either, who see low Mexican salaries as unfair competition.

During the Nafta renegotiations, Mexico has come under criticism for poor worker conditions, which the US and Canada say allows it to benefit disproportionately from the pact.

Along the border, US average wages are about five times higher than Mexican wages, one of the largest per capita wage differentials of any land border on the planet.

"Let me tell you something, this is not a minor adjustment, considering that since this administration began almost five years ago the minimum salary was barely 60 pesos," President Pena Nieto said.

He went on to say there had been a 20 per cent increase in the minimum wage in real terms since he took office in 2012.

Last month,the President said he saw the renegotiation of Nafta as an opportunity to improve conditions for workers, adding he did not want the country to compete on low salaries.

In a statement, business chamber Coparmex, a member of Mexico's salary commission, called the increase a halfway measure and recommended raising wages further to 95.24 pesos (£3.83).

It was not immediately clear why the commission decided against raising wages further. However Mexico's inflation is at an eight-year high of 6.30 per cent, more than double the central bank target of three percent.

Additional reporting by agencies

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