Maquila Reference is designed to serve as a reference/guide for the Maquiladora Industry and Mexico manufaturing.

Manufacturing in Mexico: Labor

Labor

One of Mexico’s greatest strengths, from a personal and professional perspective, is its people. The workforce is diverse, ranging from unskilled labor to highly skilled professionals, which lends itself well for manufacturing in Mexico. Also, the maquiladora’s sixty-year history of manufacturing in Mexico has resulted in a well-trained, multigenerational pool of manufacturing talent throughout the country and for almost any industry.

A big challenge most foreign companies face when establishing a factory for manufacturing in Mexico is understanding how to successfully integrate their corporate culture with the regional culture of their new workforce. This point is often overlooked by foreign human resource mangers and can result in a dysfunctional factory with high turnover and poor attendance. Designing the right salary and benefits structure can play a critical roll in the success when manufacturing in Mexico.

Another major challenge for Mexico manufacturing has come with the passing of Mexico’s new Labor Decree in December of 2012. This decree is the first major change to Mexican labor laws in almost 40 years and included more than 300 changes. Companies both new and established are struggling to understand and comply with the new labor laws in Mexico, resulting in loss of productivity and, in some cases, fines for noncompliance.

Working with a strong outsourced administration and compliance management firm in Mexico, such as a shelter company, can play a large roll in the success of any new or established facility. A strong shelter company will be experts in the area of human resource services in Mexico, which may include recruiting in Mexico, payroll in Mexico and HR supervision in Mexico.

Related Links:
Society for Human Resource Management: Click here

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