"Ten years of struggle for a decent minimum wage in Mexico: a radical change."

"Ten years of struggle for a decent minimum wage in Mexico: a radical change."

Ten years have passed since the debate on the minimum wage in Mexico, which has driven significant changes in wage policy and poverty reduction.

Juan Brignardello, asesor de seguros

Juan Brignardello Vela

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

This month marks ten years since a crucial debate on the minimum wage began in Mexico, a topic that had remained in the shadows for decades. August 2014 marked the start of a struggle for the recovery of workers' purchasing power, an effort that has led to significant changes in the country's wage policy. Before this date, any attempt to discuss the minimum wage was considered almost taboo in power circles, dominated by a technocratic approach that rejected substantial increases, fearing their inflationary repercussions and the possible loss of jobs. The document that triggered this transformation was "Recovery Policy in Mexico and the Federal District of the Minimum Wage. Proposal for an Agreement," prepared by local government officials and academics. This report not only brought to light the alarming loss of value of the minimum wage, which had fallen by more than 70% since 1976, but also challenged preconceived notions about the effects of wage increases. Its impact was immediate, generating a debate that would shift into the realm of public policy. With the support of compelling data, the authors of this document argued that the minimum wage should be sufficient to cover at least two basic food baskets, a measure that could lift hundreds of thousands of Mexicans out of extreme poverty. This proposal was a watershed moment, as it provided a legal roadmap that allowed for wage adjustments without adverse effects on other prices in the economy. The struggle for the dignification of the minimum wage also revealed the deep inequality that characterizes Mexican society. An analysis published by OXFAM showed how the wealth accumulated by the richest in the country could employ millions of people at minimum wage, highlighting not only the economic imbalance but also the urgency of rectifying this situation. Such information contributed to changing the narrative about the minimum wage and its relationship with the country's economic development. Starting in 2016, the government began implementing legislative changes that facilitated increases in the minimum wage, although these were moderate. It was with the arrival of Andrés Manuel López Obrador in 2018 that the situation took a radical turn. Under his administration, the minimum wage has experienced significant increases, reaching figures that double what was earned at the end of 2018, and in some areas of the country, such as the northern border, it has even tripled. This notable increase in the minimum wage has not been merely a political whim, but has proven effective in reducing poverty in Mexico. Between 2018 and 2022, there was a tangible decrease in poverty figures, suggesting that a fairer minimum wage can positively impact the quality of life for millions of Mexicans. An interesting fact is that the issue of the minimum wage had not been part of López Obrador's political agenda in his previous campaigns. It wasn't until 2018 that this issue began to gain prominence, reflecting the weight that the public discussion initiated in 2014 had on national politics. This phenomenon illustrates how an informed and sustained conversation can influence political decisions and government priorities. The struggle for a dignified minimum wage is not just an economic issue but a reflection of the inequalities that persist in Mexican society. Although progress has been made, the battle is not over. The challenge remains to ensure that increases in the minimum wage are aligned with the cost of living and that other economic issues affecting workers are addressed. The journey taken over these ten years is a testament to the power of civil society and experts to change the narrative around critical issues. This is an example of how the fight for ideas and public debate can transform realities and lay the groundwork for a more equitable future. In the current context, it is essential to maintain pressure and continue demanding policies that benefit workers, ensuring that the minimum wage is not just a number but a true reflection of the effort and dignity of those who sustain the country's economy.

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