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 Frontera NorteSur
October 2000


COMMERCE, LABOR & ECONOMICS


Employee Turnover Rising in Matamoros

[Editor's note: Rather than look at pay rates, working conditions, the repetitive nature of maquiladora work and the possibility of better job opportunities, this article partly attributes rising employee turnover to a "crisis of values."]

Up until four years ago Matamoros was not experiencing a phenomena limited to Ciudad Juárez, Tijuana and Reynosa: high employee turnover in its plants. According to the SITPME union studies done by the Colegio de la Frontera Norte (COLEF) the monthly rate of employee turnover was about 2% in 1995. In 1996 it rose to 3%, in 1997 to 4%, in 1998 and 1999 the employee turnover rate was at 5% while this year it rose to 6%.

SITPME studies reveal that while this trend and the numbers are alarming, job desertion is limited to a specific age group. Workers between 18 and 23 years old leave their jobs quite frequently while workers between the ages of 25 and 32 do not move in and out of jobs. The older group's behavior is attributed to the fact that they have family responsibilities and want a stable job. The younger group is better educated and often works only to get through college. This group is also seen to be more demanding as to what it wants in the work place.

The SITPME also stated it also must be recognized that "our society is experiencing a crisis of values."

Source: Mañana, September 25, 2000. Article by Anadelia Su Castillo.

Maquiladoras Planned for Tamaulipas Prisons

El Mañana writes that Matamoros' prison Cereso II could become "a true center for reform with the introduction of a maquiladora to the prison which would provide employment to prisoners there."

On September 7, personnel from the Government Department (Secretaría de Gobernación) accompanied State Prison Director Pedro Ernesto Benavides Benavides on a tour of the penitentiary to study the Cereso II's open spaces where maquiladoras could be installed to give employment to the 1,809 prisoners there.

Roberto Robledo Pérez, commissioned by the Government Department to inspect state prisons, said that Cereso II was the first prison he had visited in Tamaulipas. His visit was due to the prison's size and national importance.

Cereso II is to be a test case for the maquiladoras-in-prisons program. If it is effective all prisons with enough space and the right conditions will receive maquiladoras.

Robledo stated that the program will be regulated at the national level although each state will have a negotiating group that will have contact with both the national regulating board and the maquiladora industry.

Source: El Mañana, September 8, 2000. Nora González.

65,000 Jobs to be Created in Tijuana

Carlos Bustamante Mora, Director of Economic Development and Local Industry (Desarrollo Económico e Industria Local) released a statement indicating Tijuana's job creation goal for the year 2000 has been increased from 45,000 new jobs this year to 65,000.

Bustamante also stated that within the first six months of the year 2000, over 20 maquiladoras opened their doors in Tijuana.  These maquiladoras house 19,961 jobs.

Tijuana has positioned itself as a major industry leader, attracting foreign corporations willing to invest as much as $280 million in a facility.  Its ready workforce and geographical location attract both foreign and national attention.  Foreign investments have already reached $678 million, representing growth of 161.8% over last year.

Thompson Display of Mexico is the latest to make a significant investment in Tijuana having invested $280 million in its maquiladora.

Canaco Fights for Right to More Chicken

"Mexico President Ernesto Zedillo Ponce de León will make an appeal before the National Confederation of Chambers of Commerce (Confederacíon Nacional de Cámaras de Comercio, Concanaco) to analyze the possibility of increasing the chicken import quota for merchants," said Jorge Almanza Armas, President of the Matamoros National Chamber of Commerce (Cámara Nacional de Comercio, Canaco).

Matamoros merchants urged for an increase to chicken import quotas. The current quota, set ten years ago, is for 490 tons per month. The merchants now want to be able to import 1,000 tons per month to meet demand for the product. 

The Matamoros Canaco organized a sit-in at the local office of the Commerce and Industrial Development Department (Secretaría de Comercio y Fomento Industrial, SECOFI).  Almanza spoke via telephone to Yamil Hallal of the Government Department.  After two hours of peaceful protest, Almanza told hundreds of protesters that Hallal had agreed to act as a mediator in this problem and had promised to set up a meeting with President Zedillo.

600 tons of chicken are imported into Matamoros a month because of the inflexibility of Secretary Herminio Blanco [SECOFI]," assured Eduardo J. Melhen Kuri, President of the Tamaulipas Federation of Chamber of Commerce (Federación  de Cámaras de Comercio).

With the existing quotas, each Matamoros citizen could eat only 600 grams of chicken a month (a little over one pound) in Canaco businesses.

Source:  El Bravo, September 20, 2000.  Article by Victor Manuel Villegas.

Water Shortage Puts Plants' Productivity At Risk

Matamoros maquiladoras are losing millions and have been forced to partially shutdown operations as a result of the low water levels in city wells. Carlos Reyes García, president of Matamoros Business Center (Centro Empresarial De Matamoros, CEM) stated that companies have had to acquire needed water from other sources, increasing their costs of production. As on much of the US-Mexico border it is worried that water supply will be the limiting factor in industrial and job growth.
 
The Matamoros Association of Maquiladoras (Asociación de Maquiladoras de Matamoros, AMAC) added that in October a water commission meeting will be held where agencies will analyze the water supply problem's effects on industry.  Roberto Mattus Rivera, director of AMAC, did not discard the temporary shutdown of some companies if the problem becomes more critical.  He added that there are a few companies that could experience serious problems but stated that others have on-site water treatment plants that would allow the companies to recycle water and keep production afloat.

Source: El Mañana, September 19, 2000. Article by Mauro L. De la Fuente Loayzat.

Canaco:  Businesses Will Close as Water Becomes Scarce

Jorge Almanza Armas, President of the Matamoros Chamber of Commerce (Cámara Nacional de Comercio, Canaco) reported that the low volume of water in the city's water wells "La Amistad" and "Falcon" could greatly affect the local economy.

In an interview Almanza stated that many local businesses such as laundromats, car washes, dry cleaners, and restaurants would all be affected if water levels remain low.  He added that the loss to the local economy could reach millions of pesos.

Almanza went on to say that the Matamoros Water and Sewage Department (Junta de Aguas y Drenaje, JAD) needs to find a solution to water supply problems as soon as possible.

"We have insisted many times that it is necessary to find other sources of water like creating a dam along the Río Bravo that would allow us to store water," said Almanza.  Canaco stated that building a dam is feasible but added that JAD needs support to begin the project.

Source: El Mañana, September 18, 2000.  Article by Mauro L. de la Fuente Loayzat.

Canaco Could Blockade International Bridges in Matamoros & Tamaulipas

The Tamaulipas Northern Border Chambers of Commerce (Canaco) could seize and shut down international bridges within the next week if the Department of Commerce and Industrial Development (Secretaria de Comercio y Fomento Industrial, SECOFI) does not increase chicken import quotas.

Yamil Hallal, president of a national chambers of commerce confederation (Confederación Nacional de Cámaras de Comercio, Concanaco) held a work session for the northern Tamaulipas Chambers of Commerce and after hearing from them he asked for the resignation of Herminio Blanco, citing erratic politics and the favoring of transnational monopolies.

In a press conference Concanaco stated that Matamoros needs a little more than 900 tons of chicken per month to satisfy demand for the product.  It was also noted that import quotas had not been changed over the last fifteen years even despite the region's extraordinary growth during that time.

Concanaco also stated that the seizure of international bridges in the five major cities along the Tamaulipas border would be a peaceful yet energetic effort.

Source:  El Bravo, September 15, 2000.  Article by Victor Manuel Villegas.

Tamauligas Gas Line Installation Put On Hold

Hired to install underground natural gas lines to Matamoros neighborhoods, Tamauligas has been suspended from digging up city streets.  As part of the gas-line contract it was agreed that Tamauligas would return streets to their original conditions.   According to officials, Tamauligas has not done so in a timely manner.

Virginia Andrade, a PRI member of the city public works commision, stated that Tamauligas is obligated to return the streets to their normal condition but instead have turned city streets into a series of giant potholes.  Andrade also said that she has gone through the city and has noted the extensive damage that the company has made.

The holes in the streets pose considerable danger to motorists and pedestrians.  Tamauligas reportedly covered holes with dirt in some areas of the city and have yet to be pave them over again.   Permission to continue preforating city streets will not be re-issued until Tamauligas fixes the already affected areas of town.

Source: El Mañana, August 28, 2000. Article by Nora González.

Ejido Land Needed for Méxicali Growth

Méxicali is currently expanding at the rate of 140 hectares per year and within two to three years will run out of land. To counter this limit to growth the city is trying to discover ways to appropriate, buy or gain title to common lands known as ejidos. This is all part of Méxicali's medium-range future plans for development. The city is also studying its own growth to learn in which directions it will expand. Housing, water and sewer needs are also being looked at now.

Victor Parra of the Department of Agrarian Reform (Secretaría de la Reforma Agraria) said that there are three legal arenas in which the city can access ejido land. These are local civil legislation, federal agrarian legislation and laws that refer to national property.

Source: La Crónica, September 20, 2000. Article by Edna Cabrera.

Méxicali Has Hidden Workforce

According to a new study released by the CDEM (Consejo de Desarrollo Económico de Méxicali) and the CDIM (Comisión de Desarrollo Industrial de Méxicali) and published in La Crónica, more Méxicali residents would be drawn into the workforce if they could find the right combination of flexible work hours, better pay, more access to daycare, better infrastructure and security, and flexible age requirements. If these things could be provided 28,536 middle and high school students could work, 10,000 people in the Méxicali Valley could obtain employment, and 26,998 homemakers could be brought into the workforce. In addition to this 5,711 people that do not look for jobs because of barriers to employment would also work.

The study also found that the Méxicali population will grow by 12,000 to 13,000 annually. Of these new arrivals 9,500 to 10,000 could potentially join the workforce. However, as things stand now, only 5,500 to 6,000 would actually do so.

Among the recommended short-term strategies to create a larger workforce are better supervisors and more recognition of good workers. These two things along with the professionalization of human resource departments would help keep people from quitting jobs. Faster, safer and more regular bus service to the Méxicali Valley would activate that area's population. Flexible scheduling, along with credit for work and English classes would allow students to work or could make them want to work. Easier access to childcare would help bring in homemakers as would higher salaries. Changing employment law could also allow retired people to work.

Source:  La Crónica, September 15, 2000.  Article by Roberto Valero.

Bankrupt Maquiladora Dismantled in Méxicali

Textile industry maquiladora Texitex was dismantled after failing to pay salaries and liquidation checks to 100 workers.  The collection department at the Mexican Institute of Social Security (Instituto Mexicano de Seguro Social, IMSS) seized industrial sewing machines while office equipment was taken by Texitex's administrative staff.

Earlier workers had seized rolls of fabric and demanded their two weeks pay and liquidations.  Workers also stated that they had attended the local Conciliation and Arbitration meeting, where they demanded backpay from Texitex owner Carlos Contreras.  Conciliation and Arbitration officials told workers that their salaries would be paid after the sale of the company's sewing equipment.

"They told us that what they get for the machines, they will use to pay our salaries," said former worker Alicia Ortega.

The building in which Texitex was housed was rented and the proprietor has already come forward to make sure that the property is not damaged.

"It's not true that the company closed because of our lack of productivity," said former worker Carla Montelongo.  Montelongo said that administrative employees and the manager were paid large sums and that is why the company closed.  Some workers have already been approached by other local textile maquiladoras and have been offered jobs.

Source: La Crónica, September 14, 2000.  Article by César Angulo.

Salt Works to Expand after Laguna de San Ignacio Was Stopped

Méxicali's La Crónica reports that the Mexican-Japanese company Exportadora de Sal S.A.--the company that was behind attempts to open a salt evaporation facility in the Laguna de San Ignacio where gray whales breed--has announced that it will increase its salt production from 7 million tons a year to 9 million tons in the Guerrero Negro lagoon. According to technical director Joaquin Ardura, the company has decided to continue its expansion and investment project. The increase in salt production will occur over a five-year period he said.

Over the past twenty years the company has been growing at a 3% annual rate. Its immediate plans are to construct a new ship loader that will increase capacity from five to nine tons. Towards this end marine barges with 120 ton capacities were previously constructed. They are towed in groups of three to the Isla de Cedros off the Baja's western coast. At the island, boats of up to 160,000 tons in capacity are loaded for Japan.

The salt evaporation facility at Guerrero Negro is the largest in the world and is the Pacific Rim's salt leader according to Ardura. It competes with four similar facilities in Australia and another which just opened this year. Its market is Japan, Korea, the US, Canada, Taiwan, New Zealand and some countries in Central America. Its sales are approximately US$80 million a year with profits between US$5-10 million.

Ardura said that there were non-environmental interests against the Laguna de San Ignacio project because salt evaporation facilities would not hurt the environment but rather would benefit it. He stated that habitat for birds and other flora and fauna would have been created by the salt works although he made no mention of threates to whales or the loud machinery which some feared would disturb the calving grounds.

Source: La Crónica, August 31, 2000. Article by Arturo López.

Baja California Investments

During the month of July, Baja California (BC) received over US$139 million in investment, according to the Department of Economic Development (Secretaría de Desarrollo Económico, Sedeco). Asia invested the most in BC, US$74.9 million, with South Korea leading the way with its 42.1 million dollar Samsung Tijuana computer-monitor plant expansion. Another large expansion was a combined Mexico/Japan investment in the Matsushita TV factory.

Europe was the second largest investor in BC. Tetra Pak invested US$25 million in Méxicali and Tecno with a US$7.6 million investment in Ensenada.

Between January and June, 2000 total investment in BC has been US$1.1 billion. 568 million was in maquiladoras, 350 million in housing development, 138 million in commercial infrastructure, 23 million in tourist infrastructure, 5.7 million in industry, 3.8 million in fishing and 3.2 million in mining.

Juan Antonio Martínez Zaragoza, a Sedeco official, said that BC's investment goal for the year 2000 is 1.7 billion dollars which he sees as an achievable amount.

Source: La Crónica, September 7, 2000. Article by Roberto Valero.

Texas Border Counties Are Heavily Hispanic

Only two US-Mexico border counties are less than 50% Hispanic according to border population data compiled by David Spener Ph.D., professor in the Department of Sociology and Anthropology at Trinity University in San Antonio, TX. These two counties are tiny Jeff Davis County, population 2,206, which is 41.8% Hispanic and Brewster County, population 10,894, which is 44.8% Hispanic (all populations are 1999 estimates).

Of the 16 US-Mexico border counties in Texas, there are three which are over 90% Hispanic. Starr County, with its 60,631 residents, is 97.9% Hispanic. 34.8% of Starr's residents are foreign born. Webb County is 95.5% Hispanic with 179,110 residents, 25.0% of whom are foreign born. Maverick County is 93.9% Hispanic with a total population of 43,535 of which 35.9% is foreign born.

Frontera NorteSur reported on Thursday, August 24 that El Paso County had the highest percentage of Hispanics of any county in Texas. This was based on an El Diario article that stated the same thing. What should have been said was that El Paso County has the most Hispanics of any border county in Texas. El Diario reported that there were 529,121 Hispanics in El Paso out of a total population of 701,908 based on early census data. This would indicate that El Paso County is 75.4% Hispanic. Spener's 1999 population estimate states that there are 746,868 residents in the county of which 76.2% are Hispanic, or 569,113. 

Over all, the border counties have 1,975,673 inhabitants according to Spener's data. Of these 83.9% are Hispanic, 13.8% are Anglo or non-Hispanic whites, and 1.4% are Black or African-American. 24.1% of this population is foreign born. Over 1.5 million of the border county residents live in just three counties: Cameron, Hidalgo and El Paso. Cameron County, with a population of 323,775, is 85.9% Hispanic and 22.1% foreign born. Hidalgo County has a population of 520,264 and is 89.3% Hispanic and 24.7% foreign born.

Note: Spener's data is from the Texas Comptroller's office and was based on the Comptroller's own Census data estimates.

Brunei Sees Investment Possibilities in Mexico


Musa Bin Haji Adnin, Honorary Consul of Brunei in Mexico, revealed that the electronic sector of his country is interested in making investments in Mexico and in facilitating commercial interchange. Brunei's interests in Baja California comes from the fact that Mexico has been known to have an open-doors policy with commerce and industry on a global level. Mexico is also seen as having a friendly stance to foreign commerce.

Adnin also came to Baja to learn about companies dedicated to the construction of modular housing. A technique that may be of interest to his country. Anin also wanted to see the state of technology studies in the state's universities.

Later, Anin will visit Nuevo León and the state of Mexico to explore the investment possibilities in those states that would benefit both nations.