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Strike in northern Mexico threatens US auto industry production

TENS of thousands of striking auto parts workers in Mexico are angry over an appeal by bosses for state intervention to resolve the dispute which entered its 12th day today.

The Business Coordinating Council (CCE), the largest bosses’ group in Mexico, appealed directly to new President Andres Manuel Lopez Obrador (Amlo) asking for him to end the “instability” caused by the strike which they warned could “bring irreversible consequences for the region’s economy.”

Around 70,000 factory workers in Matamoros in Tamaulipas state walked out at the beginning of January in a dispute over an annual pay award. 

They are demanding a 20 per cent pay rise and a $1,700 (£1,300) bonus, with bosses refusing to pay out.

Workers in Matamoros are among the lowest paid in Mexico with the average wage 30 per cent lower than the national average. The average monthly salary in the factories ranges from $190 (£145) to $337.60 (£258) per month.

Strike action has affected at least 45 “maquiladoras” — factories that produce goods for the US market, including cables, electrical components, parts and accessories for vehicles, textiles, chemical products, machinery and computer products.

The walkout appears to be affecting the US auto industry with reports that production has slowed in GM Motors. Production at Ford’s assembly plant in Michigan will come to a standstill this week due to a shortage of parts caused by the Mexican strike.

Demonstrations are being closely watched by Mexico’s armed forces while bosses are reportedly locking workers in, preventing them from joining the action.

Strikers have urged international solidarity and called for “all Mexican workers” to join them in a national general strike, which they are labelling “A Day Without Workers.”

Amlo insists that he has taken measures to improve conditions for workers along the US-Mexican border by increasing the minimum wage from $4.50 (£3.50) to $9 (£6.80) a day.

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