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All three levels are below the average cost of living in Mexico’s cities, and most salariesare discussed in terms of multiple minimum wages: one minimum wage, two to fiveminimum wages, or more than five minimum wages. Wages have not kept up withinflation over the past several years, so Mexican workers have taken a heavy cut in realwages. The law sets a standard six-day workweek with one paid day off. For overtime,workers must be paid twice their normal rate and three times the hourly rate for overtimeexceeding nine hours per week. Employees are entitled to most holidays, paid vacation(after one year of service), vacation bonuses, and an annual bonus equivalent to at leasttwo weeks pay. Companies are also responsible for these additional costs. These costsusually add about 30 to 35 percent to an average employee salary. Employers must alsocontribute a tax-deductible two percent of each employee's salary into an individualretirement account. Most employers are required to distribute ten percent of their pre-taxprofits for profit sharing. Speaking on behalf of the current administration, the LaborSecretary has repeatedly affirmed that labor reform is and remains one of the toppriorities of President Calderon's government.There is a large surplus of labor in the formal economy, largely composed of low-skilledor unskilled workers. On the other hand, there is a shortage of technically skilled workersand engineers. Mexican manufacturing operations are experiencing stiff wagecompetition from Central America, China, India, and elsewhere in low technology work,such as textile and garment manufacture, but changing global circumstances havebrought some industries back to “near shore” operations along the border.For the past several years, with the possible exception of the mining industry, strikeshave been limited and usually settled quickly. Strikes that are more difficult will usuallydraw government mediators to help the settlement process. Labor-managementrelations are uneven and depend upon the unions holding contracts and the industriesconcerned. Information on unions registered with federal labor authorities is now partiallyavailable to the public via Internet (www.stps.gob.mx), but this database is incomplete.The government is coming under increasing pressure about its control over unionleadership, exercised through official recognition of union election results. This processis seen by independent unions as a violation of autonomy, and it has been at the core ofrecent government-union tension.Foreign Direct Investment StatisticsReturn to topForeign Direct Investment in Mexico (USD Million)2004 2005 2006 2007 2008Total FDI Inflow: 23,725 22,106 19,471 27,094 22,517New Investments 14,106 10,979 5,815 13,288 7,888EarningsReinvestment2,520 4,029 7,750 8,056 7,512Inter-companyInvestment7,099 7,098 5,906 5,750 7,117
Foreign Direct Investment Realized in Mexico By Industrial Sector Destination(USD Million)2004 2005 2006 2007 2008Total FDI Inflow: 23,725 22,106 19,471 27,094 22,517Agriculture 22 10 22 132 33Extractive 210 224 393 1,763 4,297Manufacturing 13,233 11,124 9,954 12,027 6,941Electricity and Water 202 202 (87) 166 414Construction 389 298 390 1,874 804Retail 1,274 2,837 565 1,449 1,613Transport andCommunication1,658 2,869 637 825 810Financial Services 5,731 1,642 4,753 6,746 4,296Others 1,006 2,900 2,843 2,112 3,309Foreign Direct Investment Inflows Realized By Country/Economy of Origin(USD Million)5 year2004 2005 2006 2007 2008 TotalsTotal FDI Inflow: 23,725 22,106 19,471 27,094 22,517 114,913United States 8,632 11,671 12,426 11,423 9,151 53,303Spain 7,856 1,198 1,615 5,303 4,338 20,310Holland 3,338 2,484 2,781 4,376 1,461 14,440France 227 364 121 201 112 1025United Kingdom 292 1,330 1,263 577 1,050 4,512Virgin Islands 56 2,051 292 1,095 1,455 4,949Canada 555 443 540 362 2,523 4,423Switzerland 1,157 321 559 602 354 2,993Germany 409 337 238 540 359 1883Argentina 11 542 22 21 1 597South Korea 48 97 72 41 398 656Brazil 48 50 50 22 80 250Taiwan 10 25 22 10 -5 62China 12 5 4 8 -1 28Japan 391 166 -1424 403 179 -285Notes FDI Investment Charts:A) Sources: Inflow - Mexican Secretariat of Economy, Director General of Foreign Investment.B) Period: 2008 data (January through December)C) Data: Millions of U.S. Dollars (USD), unless noted.D) The Secretariat of Economy has recalculated values for past years. All values for past years are the mostup to date data provided by the Secretariat of Economy.
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- Page 59 and 60: U.S. Export ControlsReturn to topMe
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Foreign Direct <strong>In</strong>vestment Realized in Mexico By <strong>In</strong>dustrial Sector Destination(USD Million)2004 2005 2006 2007 2008Total FDI <strong>In</strong>flow: 23,725 22,106 19,471 27,094 22,517Agriculture 22 10 22 132 33Extractive 210 224 393 1,763 4,297Manufacturing 13,233 11,124 9,954 12,027 6,941Electricity and Water 202 202 (87) 166 414Construction 389 298 390 1,874 804Retail 1,274 2,837 565 1,449 1,613Transport andCommunication1,658 2,869 637 825 810Financial Services 5,731 1,642 4,753 6,746 4,296Others 1,006 2,900 2,843 2,112 3,309Foreign Direct <strong>In</strong>vestment <strong>In</strong>flows Realized By <strong>Country</strong>/Economy <strong>of</strong> Origin(USD Million)5 year2004 2005 2006 2007 2008 TotalsTotal FDI <strong>In</strong>flow: 23,725 22,106 19,471 27,094 22,517 114,913United States 8,632 11,671 12,426 11,423 9,151 53,303Spain 7,856 1,198 1,615 5,303 4,338 20,310Holland 3,338 2,484 2,781 4,376 1,461 14,440France 227 364 121 201 112 1025United Kingdom 292 1,330 1,263 577 1,050 4,512Virgin Islands 56 2,051 292 1,095 1,455 4,949Canada 555 443 540 362 2,523 4,423Switzerland 1,157 321 559 602 354 2,993Germany 409 337 238 540 359 1883Argentina 11 542 22 21 1 597South Korea 48 97 72 41 398 656Brazil 48 50 50 22 80 250Taiwan 10 25 22 10 -5 62China 12 5 4 8 -1 28Japan 391 166 -1424 403 179 -285Notes FDI <strong>In</strong>vestment Charts:A) Sources: <strong>In</strong>flow - Mexican Secretariat <strong>of</strong> Economy, Director General <strong>of</strong> Foreign <strong>In</strong>vestment.B) Period: 2008 data (January through December)C) Data: Millions <strong>of</strong> U.S. Dollars (USD), unless noted.D) The Secretariat <strong>of</strong> Economy has recalculated values for past years. All values for past years are the mostup to date data provided by the Secretariat <strong>of</strong> Economy.
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