The Sounds of Silence: Organised Labour's Response to Economic Crisis in Mexico

Abstract

Mexico's post-1982 economic crisis has produced particularly serious challenges for the organised labour movement. Government austerity measures and economic contraction in the private sector resulted in an estimated unemployment rate of 17.6% in 1987.1At least another 25–35% of the working-age population was employed in only marginally productive activities. Real minimum wages fell by 41.9% between 1982 and mid-1987 under the pressure of record inflation rates2and government subsidies for basic commodities, mass transportation, electricity, natural gas and gasoline were also drastically reduced or eliminated. These economic conditions and tight government control over wage increases placed incumbent labour leaders under increasing pressure from the rank and file. The prospect of continued economic stagnation and government efforts to redefine the country's model of economic development raise important questions regarding organised labour's long-term position in Mexico's governing ‘revolutionary coalition’.