A (), or () is a factory that is largely duty-free and tariff-free. These factories take raw materials and assemble, manufacture, or process them and export the finished product. These factories and systems are present throughout Latin America, including Mexico, Paraguay, Nicaragua, and El Salvador. date back to 1964, when the Mexican government introduced the ('Border Industrialization Program'). Specific programs and laws have made Mexico's maquila industry grow rapidly.Sklair, L. (1993). Assembling For Development: The Maquila Industry in Mexico and the United States. San Diego: The Center for U.S.–Mexican Studies University of California. p. 10.
History From 1942 to 1964, the Bracero program allowed men with farming experience to work on U.S. farms on a seasonal basis, and its end ushered in a new era for the development of Mexico. The Border Industrialization Program (BIP) began in 1965 and allowed for a lowering in restrictions and duties on machinery, equipment and raw materials. Before this program, PRONAF, a national border program for infrastructure developments like building roads, parks, electricity, water, building factories, and cleaning up border cities, helped to improve situations along the U.S.–Mexico Border. With BIP, foreign firms were able to use factories built under PRONAF to import raw materials and export goods for a cheaper cost than in other countries. One of the main goals of the Border Industrialization Program was to attract foreign investment.The Human Race: Escaping From History. Employee turnover is also relatively high, p. 52.
In 1989, the Mexican federal government put in place specific procedures and requirements for maquilas under the "Decree for Development and Operation of the Maquiladora Industry". Following a debt crisis in 1980, the Mexican economy liberalized and foreign investment increased. Factory jobs began to leave central Mexico, and workers followed the jobs from central Mexico to the maquilas in the north and on the border. In 1985, maquiladoras overtook tourism as the largest source of foreign exchange, and since 1996, they have been the second largest industry in Mexico behind the petroleum industry.
NAFTA With the introduction of NAFTA in 1994, Northern Mexico became an export processing zone. This allowed multinational corporations from the U.S. to produce products cheaply. Corporations could use a maquila to import materials and produce a good more cheaply than in the U.S. by paying Mexican laborers lower wages and paying less in duties. Mexicans work for approximately one-sixth of the U.S. hourly rate. During the five years before NAFTA, maquila employment had grown at a rate of 47%; this figure increased to 86% in the next five years. The number of factories also increased dramatically. Between 1989 and 1994, 564 new plants opened; in the five years following, 1460 plants opened. However, the maquiladora growth is largely attributable to growth in U.S. demand and devaluation of the peso, not NAFTA itself.Larudee, Mehrene. "Causes of Growth and Decline in Mexico's Apparel Sector." International Review of Applied Economics, Vol 21, September 2007. pp. 539-559.Truett, Lila and Truett, Dale. "NAFTA and the Maquiladoras: Boon or Bane." Contemporary Economic Policy, Vol 25, July 2007. pp374-386Vietor, Richard H.K. and Veytsman, Alexander. "American Outsourcing." Harvard Business School Case Study No. 9-705-037, rev. 2 February 2007 (Boston, MA: HBS Publishing, 2005), p. 6. "The devaluation of the peso in 1994, which overnight reduced all peso-denominated manufacturing costs including energy and labor, improving the profitability of the maquiladoras, explains the growth spurt more than the changes in duties that were the result of NAFTA. US tariffs were already low, and Mexican duties were already not charged to maquiladoras." In the 1970s, most maquiladoras were located around the Mexico–United States border. By 1994, these were spread in the interior parts of the country, although the majority of the plants were still near the border.
The 2000s A 2011 Federal Reserve report indicated that the maquiladora industry affects U.S. border city employment in service sectors. Although the maquiladora industry suffered due to the early 2000s recession, maquiladoras constituted 54% of the U.S.–Mexico trade in 2004, and by 2005, the maquiladora exports accounted for half of Mexico's exports. In the 2000s, the maquila industry faced competition due to rise of other countries with availability of cheap labor, including Malaysia, India, and Pakistan. The biggest threat came from China's Special Economic Areas.
Growth and development During the later half of the 1960s, maquiladora industries rapidly expanded geographically and economically and, by 1985, had become Mexico's second largest source of income from exports, behind oil.Stoddard, Ellwyn R. Maquila: Assembly Plants in Northern Mexico. p. 2. Since 1973, maquiladoras have also accounted for nearly half of Mexico's export assembly. Between 1995 and 2000, exports of assembled products in Mexico tripled, and the rate of the industry's growth amounted to about one new factory per day.Shorris, Earl. The Life and Times of Mexico. p. 531 By the late twentieth century, the industry accounted for 25 percent of Mexico's gross domestic product, and 17 percent of total Mexican employment.Hausman, Angela and Diana L Haytko. Cross-border Supply Chain Relationships: Interpretive Research of Maquiladora Realized Strategies. p. 25.
Globalization Since globalization and physical restructuring have contributed to the competition and advent of low-cost offshore assembly in places such as China, and countries in Central America, maquiladoras in Mexico have been on the decline since 2000. According to federal sources, approximately 529 maquiladoras shut down and investment in assembly plants decreased by 8.2 percent in 2002 after the imposition of countervailing duties on Chinese products, not available in North America, that were part of the electronics supply chain. Despite the decline, over 3,000 maquiladoras still exist along the 2,000-mile-long United States–Mexico border, providing employment for approximately one million workers, and importing more than $51 billion in supplies into Mexico.Villalobos, J Rene, et al. Inbound for Mexico. p. 38. Research indicates that maquiladoras' post-NAFTA growth is connected to changes in Mexican wages relative to those in Asia and in the United States, and to fluctuations in U.S. industrial production. As of 2006, maquiladoras still accounted for 45 percent of Mexico's exports.Gruben, William C. and Sherry L. Kiser. The Border Economy: NAFTA and Maquiladoras: Is the Growth Connected? Maquiladoras, in general, are best represented among operations that are particularly assembly intensive.
Women
Women enter the labor force and face inequality through different means Women entered the labor force in Mexico in large numbers in the latter half of the 20th century. Devaluations of the peso in 1982 and 1994 pushed many Mexican women into the labor force. Between 1970 and 1995, 18% more women were part of the working force, and many of these women were working in maquila factories. Women looked for work in factories because they could get jobs with few credentials and receive on the job training. Men working in maquilas were given positions of supervision, management, engineers, and technical jobs, while women were relegated to low-skill jobs. Young women tended to be hired more often than older women, but it depended on the circumstances of the job and type of factory. However, young single women often ended up in factories with better working conditions, like the electronics plants, while older women and mothers worked in more dangerous apparel factories.
Gender plays a key role in both disguising and preserving economic frustration in the city of Juárez, Mexico. Given that several women are brutally murdered in Mexico, with Juárez as one of the main city targets, it is essential to look into the orientations of male authority, cheap labor exploitation, and the maquiladoras export processing zone. Oftentimes, young women are murdered as a result of economic frustration, being directed at the maquiladora workers. Working women are viewed by the maquiladora system as "cheap labor" and easily replaceable, which makes it easy and acceptable to kill these women without consequences. In order to examine the relationship between gender and production, gender and violence, this article focuses on situating the killings of these women within their social and ideological contexts. In this piece, the reasons for these women's treatment and the social justifications for it are examined.
Poverty is a key factor that motivates women to work in maquiladoras. The minimum wage set by the Mexican government is barely enough to help sustain a family even with both parents working. The minimum wage "buys only about a quarter of the basic necessities that are essential for a typical worker's family". Maquilas pay at much higher rate than the minimum wage in most markets since there is a lot of competition for the best workers, and workers will not work without transportation and other bonuses. The 2015 minimum wage was 70.1 pesos per day in Tijuana (minimum wages vary by zone and worker classification) or about $0.55 per hour at the 2016 exchange rate of 16 pesos per dollar,Minimum wage, Zeta, 31 December 2014. Retrieved 22 January 2016. while most entry-level positions in maquilas paid closer to $2 per hour including bonuses and 25% being paid to Social Security, housing, and retirement. Even in maquila factories, wages are still very low and in many families the children are encouraged to start working at an early age to support the family. In some maquiladoras, workers are cut and their responsibilities are given to a single worker. These workers are not given a higher pay, and are expected to maintain their output without a decrease in quality. They often work involuntary overtimes and are often not paid for their extra labor.
Gendered violence in the maquiladora labor force Allegedly, women are not allowed to be pregnant while working. Some maquilas require female workers to take pregnancy tests. Some require that workers resign if they are pregnant. Female applicants are made to take pregnancy tests and are only hired if not pregnant, and women that become pregnant while working at maquila factories are given more strenuous tasks and forced to work unpaid overtime to influence them to resign. Human Rights Watch wrote a report in 1996 about the failures of the government to address this issue despite the fact that pregnancy testing violates Mexican federal labor law. These practices have continued into the 21st century. Once on the job, many women face sexual harassment by supervisors and find no help from human resources.
Due to the cruel and horrific appearances of violence against women in Mexican society, feminists have been working at the community level to end sexual violence against women in Ciudad Juárez, Mexico, many years before the #MeToo movement was even conceived. Sociologists and feminists wonder whether the #MeToo movement has already taken root in Mexico and if so, how? Sociologists and feminists ask themselves questions such as: Has Ciudad Juárez's #MeToo movement made an influence on women's lives there? If so, by how much and why? This article explores the significance of maquiladoras and how the working conditions there have impacted women as well, by allowing the exploitation of women. Finally, the article successfully communicates all of its ideas through a thorough discussion between its authors.