Mexico’s low wages are under fire at NAFTA negotiations

MEXICO CITY – Mexico’s low wages have become an increasing point of debate as the second round of negotiations on the North American Free Trade Agreement moved into their fourth day.

Mexican business and labour leaders are resistant to any attempt by the United States to tighten labour standards or ensure that Mexican wages rise. Mexico has drawn plants and investments by capitalizing on low wages and weak union rules.

Mexican and Canadian auto unions say in a report that Mexican autoworkers earn about $3.95 an hour, which is about one-ninth of average wages north of the border.

Canadian auto workers leader Jerry Dias said over the weekend that wages should be equalized. But top Mexican union leader Carlos Aceves del Olmo says equalizing wages is “a pipe dream.”