Catherwood LibraryILR School

After suffering major drops in real wages in the 1990's due to a massive currency devaluation and soaring inflation, Mexican workers and their unions are calling for significant wage increases. This is occurring at a time when the downturn in U.S. demand for Mexican goods is aggravating a Mexican economy already in recession. Some economists fear that with increased union activity and demands for wage raises, companies that moved their production facilities to Mexico to exploit its low wages and lack of unionism will begin to consider relocating their operations elsewhere.