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LatinNews Daily - 02 May 2018

Anaya courting Mexico’s business sector

Development: On 1 May Ricardo Anaya, the presidential candidate of the Right-Left Por México al Frente opposition coalition in the 1 July general election, said that if elected he would increase the country’ minimum wage by 115% to M$160 (US$10.00) per day.

Significance: Anaya’s pledge to increase the minimum wage is in line with the recent calls made by the Confederación Patronal de la República Mexicana (Coparmex) business sector lobby for a significant increase in the national minimum salary that would allow Mexico to move way from its current export-led economic model dependent on low wages to a higher-wage model based on higher levels of domestic consumption. Anaya, who is currently running second in all public opinion polls, is clearly trying to win Comparmex’s support by making a pledge that sets him apart from the current leader in the opinion polls, Andrés Manuel López Obrador of the left-wing opposition Movimiento Regeneración Nacional (Morena) party.

  • Anaya’s pledge came during a press conference he offered to mark Labour Day. He said that his prospective government would be committed to improving the situation of Mexican workers. He went on to present five economic policy proposals that would be implemented by his government. Chief among these was to gradually increase the minimum wage from the current M$88.36 to M$190 to help boost Mexicans’ purchasing power.
  • Anaya said that under the current Partido Revolucionario Institucional (PRI) administration the purchasing power of Mexicans had been eroded as result of rising inflation and that the minimum wage currently only covers 40% of the basic basket of goods. He added that his proposed increase would bring the minimum wage to the level necessary for households to afford a basic basket of goods.
  • The minimum wage proposed by Anaya is even higher than the M$98.15 per day that Comparmex has been calling for. This led to his proposal being applauded by the lobby group, as well as by the likes of the national human rights commission (CNDH) which noted that the minimum wage “should allow workers to meet all their basic needs”. It was also welcomed by some trade unions, which staged demonstrations yesterday demanding higher salaries and improved working conditions.
  • But not by all unions support a minimum wage increase. The Confederación Revolucionaria de Obreros y Campesinos (Croc), which has historic ties to the PRI, said that conditions are currently not in place to increase the minimum wage, warning that such an increase could lead to layoffs, particular in the small and medium-sized enterprises (SMEs) sector.

Looking Ahead: Not to be outdone by Anaya, López Obrador yesterday said that he was also in favour of increasing the minimum wage as proposed by Coparmex. The question is whether Anaya’s pledge will be seen as serious by the wider electorate or as just a populist pledge that could be matched (or even exceeded) by López Obrador or one of the other presidential candidates.

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