NAMI News
The latest trinational news.Monday, June 01, 2009
Mexican Factories May Cut Fewer Jobs Than in 2001: Week Ahead
Bloomberg, June 1, 2009 - “Export companies in Mexico such as auto-parts maker Delphi Corp. are firing fewer workers this year than during a 2001 recession on optimism that demand will recover from a worldwide economic slump by next year. Delphi, the former unit of General Motors Corp., shuts its 48 Mexican plants one week a month to avoid layoffs as demand for car parts declines. Other companies also are using partial closings and furloughs, which may limit job cuts at export factories this year to about 7 percent of their total workforce, said Cesar Castro, president of the National Council for Maquiladora and Export Manufacturing Industry. “It’s a way to avoid as much as possible the firing of qualified workers, who have a lot of training and are specialized,” said Castro, who manages a Mexican factory for Jabil Circuit Inc. “The companies don’t want to lose them.” Limiting layoffs may help prop up consumer spending as the economy heads for a 5.5 percent contraction this year, according to the Mexican government’s forecast. The government has announced 2 billion pesos ($151.7 million) of direct support to manufacturers to protect jobs amid the global recession that has sapped demand for factory goods, particularly in the U.S., the destination for 80 percent of Mexico’s exports.” Read More.
NAMI publishes a monthly e-newsletter of trinational and organizational news. If you would like to keep up with NAMI, trinational issues and NAMI's exclusive events, click here to sign up today.
