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Coparmex Mexicali Celebrates Minimum Wage Increase

-Editorial

COPARMEX Mexicali celebrated the increase in the general minimum wage agreed upon on Friday, December 1, by the Council of Representatives of the National Minimum Wage Commission (CONASAMI) through a tripartite dialogue to 312.41 pesos.

The Minimum Wage in the Northern Border Free Zone will increase to 374.89 pesos by 2024, attributed to the combination of an MIR of 41.26 pesos and an increase based on inflation of 6%.

This increase will benefit approximately 864 thousand workers insured in the IMSS, assured COPARMEX.

In this way, the General Minimum Wage will rise from 207.44 pesos to 248.93 pesos by 2024, owing to the blend of two factors: an Independent Recovery Amount (MIR) of 27.40 pesos and a 6% inflation-based increase. It is estimated that this rise will benefit around 6.9 million insured workers in the IMSS.

Regarding Minimum Professional Salaries, a 20% increase was set. Since 2016, COPARMEX has advocated for a “New Wage Culture,” prioritizing the minimum wage, an unprecedented action among employer organizations worldwide.

The objective is for the General Minimum Wage to sufficiently cover the line of family well-being, equivalent to two food baskets and non-food items. Essentially, the income of two formally employed individuals should support an average Mexican family of four.

The employer sector has been promoting Minimum Wage increases in recent years to move closer to this goal.

With unanimous agreement within CONASAMI, the General Minimum Wage will encompass 86% of the family welfare line. Simultaneously, the Minimum Wage in the Northern Border Free Zone will reach 130%. At COPARMEX, the target is set for the General Minimum Wage in the rest of the country to cover the family well-being line by 2026.

Despite the challenges posed by the pandemic and rising labor costs, the goal of restoring the purchasing power of the general minimum wage remains unchanged.

The president of COPARMEX Mexicali highlighted that the present value of the recovery of the minimum wage to welfare levels COPARMEX is promoting stands around 450 per day. This target is expected to be met by 2026, with the implemented strategies on the right path.

It is crucial to emphasize that the increase in the minimum wage is essential for wealth distribution and the economic recovery of low-income individuals.

Moreover, it is an effective strategy to tackle informality. It is no longer justified for the minimum wages in the center of the country to differ from those on the border as competitiveness remains vital for the border region to have lower wages than the central areas.

It is significant to note that while the increase in the minimum wage generates profitability pressures, it benefits by putting more money in workers’ pockets, stimulating internal consumption, and creating a positive economic cycle.

This increase indeed poses a challenge for the business sector, but COPARMEX is prepared to embrace these challenges to adapt to the new work culture that is not just a trend in Mexico but worldwide. Hence, there’s a need to implement and develop mechanisms for efficient workforce usage, training, and enhancing processes, procedures, and methodologies, utilizing artificial intelligence, and robotics, among others.

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