Blue Jeans in Torreon
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Transcript of Blue Jeans in Torreon
Blue Jeans in Torreon
• Ancient Maya and Aztec civilizations: Teotihuacan and Tenochtitlan
Historical context
HistoricizingHistoricizing Blue Jean Manufacturing in Torreon
• Colonial legacies– Depopulation– Land alienation– Peasant exploitation and strict division of racial castes
• 1821: Independence from Spain, but still ruled by criollo elites• 1848: Mexican American War…..Mexico loses Texas, SW US• 1876-1910: The Porfiriato:
– Dictatorship, modernization, US buys Mexico, land concentration, starvation among Indians
• 1910: Mexican revolution– Some redistribution of land—very uneven
• Post WWII : – Import Substitution Industrialization (ISI)– Uneven subsidies and development in different parts of the country
• 1992: Communal land can be sold again
Mexico 2003
• NAFTA 1994• Protectionism (ISI) relatively open, market
driven– 8th largest exporter: $52 Billion (1993)$166 Billion
(2000)– Net FDI: $3.5 Billion $24.7 Billion
• “Middle income” country ~$5000 per capita• Movement towards democracy?
– PRI officially out of powerVicente Fox PAN (center right)
– Ciudad Juarez murders….no one wants to investigate
Aggregate Social Indicators
• Under-five mortality rate dropped from 46 to 29 per 1,000 between 1990 and 2000
• Access to clean water 86 percent• Literacy rate is over 90 percent
• HOW DO THESE STATISTICS OBSCURE DIFFERENCE?
“Two Mexico's”regional disparities
Two Mexico’sTransportation system
Two Mexico'sEconomic/Social Disparities
• Minimum wage declined from $5-$4/day.– 50% of the workforce makes < $8/day
• Informal economies: 15% of pop.
• Infant Mortality: 13% v. 52% (20th percentiles)
• Education: (7 years av.) 12.1% v. 1.1% (10th percentiles)
• HDI: 55th after Cuba, Belarus, Trinidad/Tobago
• Agricultural workers: 8 million6.5 million– New land ownership laws
– Influx of cheap US corn
– Little support for non-traditional exports
• Food prices grew by 257%• Migration to the US 2X
• “The countryside can’t take it anymore”
Rural –urban disparities:conditions since NAFTA decline
“Huge sucking sound to the East” China
Does Maquiladora growth benefit workers or just owners
of corporations?
Torreon, Coahila, Mexico
Blue Jeans in Torreon
• Commodity chain approachProduction and Marketing Chains
also Social Movements, Governments
• Bair and Gereffi, 2001: “By focusing on the chain or organizational network as the unit of analysis, rather than the firm, interesting questions about power, governance and the dynamics of chains emerge.”
Maquiladora Growth
Industry Statistics - Mexico
The Maquiladora Industry in Mexico, January 1994-1999 Border Region
# Employees Jan '94
# Employees Jan '99
# Maquilas Jan '94
# Maquilas Jan '99
Baja California
111,728 217,366 822 1,090
Sonora 43,670 85,646 182 252
Chihuahua 166,134 274,998 305 379 Coahuila 47,830 99,604 185 268
Tamaulipas 100,027 152,276 293 351 Subtotal Border States
469,389 829,890 1,787 2,340
Other States 77,044 230,327 370 803 Total 546,433 1,060,217 2,157 3,143
Source: In: Coalition for Justice in the Maquiladoras, Annual Report 1999
Apparel Employment
Apparel industry indicators for Torreon
Main clients for Torreon apparel exports
Pre-NAFTA Manufacturer Dominated Assembly Network in Torreon
Post NAFTA Full Package Networks in Torreon
US¯Torreon apparel commodity chain activities and location
Top 10 apparel manufacturers in Torreon, Mexico¯¯July 2000
Changing Labor Conditions?-upside
• For some skilled jobs (cutting and laundry), labor “shortages” due to need for more skilled labor– High turnover- Labor wars
• Higher wages for some skilled laborers• Upscale labels promote improved working
conditions• New factories are often better than US apparel
factories• Codes of Conduct displayed (but in English!!)
Changing Labor Conditions?-downside
• Concentration of ownership in few extended families– Increased failure of small and medium sized local firms– Downward pressure on wages for subcontractors
• Destruction of existing networks of cooperation– Distrust and greater competition among local firms
• Higher wages must be seen in context of 1994 devaluation of peso decline in living standards since then
• Male privilege– Only workers in “skilled labor”: cutting and laundry– more readily promoted to skilled and management positions
• Mexican Government has reduced the power of unions to a minimum
How can we better explain these conclusions?
Extend commodity chain analysis to include social movements in the
consuming countries and government institutions in developing countries
Factory Code Initiatives in North
• UK: Ethical Trading Initiative (ETI)• US/Europe: SA 8000 (Social Accountability 8000)• US:
• Workers Rights Consortium – University Clothing
• Fair Labor Association (FLA)– Adidas-Salomon, Eddie Bauer, GEAR for Sports, Joy Athletic, Liz
Claiborne, Nordstrom, Nike, Patagonia, Reebok, Phillips-Van Heusen, Polo Ralph Lauren and Zephyr Graf-X.
• WRAP (Worldwide Responsible Apparel Production) Lower Standards
Maquila Solidarity Network
• Concern for workers rights and environmental/health
• “Toxic Fashions” and “Blue jean blues” require toxic chemicals
• Mercerization: Sulphur, caustic soda, acid• Tinting and Overdyes-manually crunched,
rubbed and sponged• Bleaching and Stonewashing: Amylase, Laccase• Drying and Baking: Toxic fumes from ovens
• Pollution of Water Supplies
Linking networks transnationallyacross Middle America
• “Network of Central American Women in Solidarity with Maquila Workers” negotiate code of conduct with Nicaraguan Labor Ministry
Government influences
• Mexican government antagonistic to union organizing and hesitant to investigate violent crimes against women.
• Some cross border organizing to combat some environmental concerns
• Torreon Chamber of Commerce http://www.torreon.gob.mx/
Bair and Gereffi Conclusions“We have argued that the arrival of new buyers in Torreon has
resulted in upgrading, both at the industry and at the firm level. But, the absence of an institutional environment that would help further diffuse the benefits of Torreon's export boom beyond the first tier of full-package firms means that there are limits to this process of upgrading, and they may have already been reached.” (2001)
“Even within Mexico’s most dynamic apparel cluster, Torreon, the benefits generated by post-NAFTA export dynamism are contingent and transitory. Globalization entails uneven development for firms and workers both within and across regions and nations, and viewing the process through the lens of the commodity chains framework contributes to our understanding of who wins and who loses, and why.” (2003)