MAQUILADORAS AND THE NAFTA’S I

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would be kept on the Mexican side of the border if they were given factory jobs on the Mexican side. The Maquiladora program also wanted to attract foreign manufacturing facilities, technology, and know-how by giving a permanent tax holiday to manufacturing companies that would set up “twin plants” on the Mexican side of the border.
In the beginning of the program, all foreign-owned operations had to be located within a 20-kilometer strip along the US-Mexican border. Since 1972 they can be located anywhere in Mexico. In 1996 there were around 2,500 Maquiladoras — 35% of them were located in the interior states of Mexico. Last year there were over 3,000 and more and more of these operations are being located outside of the border regions. Each of Mexico’s 31 states has at least one Maquiladora.
What is a Maquiladora?
Maquiladoras, also referred to as “in bond” or “twin” plants, are allowed to temporarily import into Mexico (free of tax) machinery, equipment, replacement ...

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from the ages of 14 to 20. They work 6 days a week in 10-hour shifts. The average weekly salary for a Maquiladora worker is US$35 - $45 even though the average monthly rent for a house with public services such as running water and electricity is around $200 a month.

For the most part, Maquiladoras are unorganized. In those that are organized, state-controlled unions represent the workers. Although some companies are unionized on paper, the unions, for the most part, function to reinforce management policies rather than for the benefit of workers. Then there are what are called “phantom” unions. These unions do not fight for the worker’s rights. The workers do not even know ...

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