A decade of struggle for the minimum wage in Mexico: achievements and future challenges.

A decade of struggle for the minimum wage in Mexico: achievements and future challenges.

In August 2024, ten years will have passed since the debate on the minimum wage in Mexico, which has driven significant increases and improvements in purchasing power.

Juan Brignardello Vela, asesor de seguros

Juan Brignardello Vela

Juan Brignardello Vela, asesor de seguros, se especializa en brindar asesoramiento y gestión comercial en el ámbito de seguros y reclamaciones por siniestros para destacadas empresas en el mercado peruano e internacional.

Juan Brignardello Vela, asesor de seguros, y Vargas Llosa, premio Nobel Juan Brignardello Vela, asesor de seguros, en celebración de Alianza Lima Juan Brignardello Vela, asesor de seguros, Central Hidro Eléctrica Juan Brignardello Vela, asesor de seguros, Central Hidro

In August 2024, it will be ten years since a crucial debate began in Mexico: the increase in the minimum wage and the strengthening of workers' purchasing power. This shift in the narrative surrounding the minimum wage in the country started with the publication of a document that, although overlooked at the time, laid the groundwork for what would become a significant movement. Prior to 2014, the technocratic elite that governed Mexico had dismissed any increase in the minimum wage that exceeded inflation, arguing that it would have supposed negative consequences for employment and the economy. The document that marked a turning point was "Recovery Policy in Mexico and in the Federal District of the Minimum Wage: Proposal for an Agreement." Drafted by officials from the then Federal District government in collaboration with academics, this text highlighted the alarming deterioration of the minimum wage, which had lost more than 70% of its value between 1976 and 2014. The authors not only presented this harsh reality but also argued for the necessity of an increase and criticized the traditional view that considered such an increase as an inflationary risk. This analysis was complemented by another study that revealed the extreme wealth inequality in Mexico. It was shown that the wealth generated by the four richest men in the country could, in theory, employ three million workers at minimum wage, exceeding the total number of unemployed in the country. This contrast highlighted not only the magnitude of wealth concentrated in the hands of a few but also the misery that the minimum wage represented for millions of Mexicans. The discussion that arose from these documents did not remain within academic circles but moved into the realm of public policy. With growing pressure, legislative changes were made that led to the creation of new units of measurement for setting prices and tariffs, which took the first step toward allowing adjustments to the minimum wage without affecting other economic areas. These changes paved the way for a cycle of increases to begin in 2016, although initially, these were modest. However, the landscape changed radically with the arrival of Andrés Manuel López Obrador to the presidency in December 2018. Since then, the minimum wage has experienced significant increases, reaching growth rates that reflect the scenarios proposed in the 2014 document. To date, real wages have increased considerably, marking over double growth in most of the country and more than triple growth in the border region. This increase is not just a number; it has had a tangible impact on reducing poverty in Mexico between 2018 and 2022. Although these changes have been well received, it is crucial to remember that the minimum wage issue was not part of López Obrador's political agenda in his previous campaigns. It was only after the start of the public discussion in 2014 that the issue became a central axis of his electoral platform in 2018. This decade-long journey demonstrates how a battle of ideas can have real effects on politics and the everyday lives of citizens. The public debate on the minimum wage has shown the power that social demands have when organized and presented with solid data and well-founded arguments. The increase in the minimum wage in Mexico can be a successful example of how social pressure and critical analysis can change the direction of public policy. Still, it is vital to continue monitoring and advocating for these increases to be maintained and for the minimum wage to be adjusted in a way that reflects the cost of living and the dignity that workers deserve. The fight for a fair wage is not over, and if the last decade has shown anything, it is that the voice of the citizenry can resonate and generate significant changes. The future of the minimum wage in Mexico will depend not only on political decisions but also on the persistence of civil society. Recent history makes it clear that struggles for economic justice can transform the reality of a country, as long as the debate remains alive and an inclusive and equitable public policy is demanded.

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