We (LOH) have spent the last several months researching and debating with one another about what constitutes a “fair” wage in Juarez. It’s tricky, sensitive stuff – but must be determined if we’re to move forward with our Income Generation Program, which would pay cooperative members a living wage to produce socially conscious clothing (the proceeds of which would benefit their community).
This past weekend we headed back to Juarez to finally have this wage discussion with the women of the cooperative…Vero had suggested last month that we get together and, as group, participate in a cost-of-living workshop, the outcome of which would inform our discussion about wages.
At the handicraft center, Vero had us list out our goals for the workshop:
- determine the cost of living a decent, productive life in Juarez and in Phoenix
- compare income inequalities between our two cities
- determine a starting figure for the wage discussion
…Then we spent two intensive hours breaking down all of our living expenses, from food and shelter to education and beer — and figured out what our daily cost of living was. We did the same for our income, then we split into two groups (U.S. and Mexico) and averaged our daily incomes and expenses.
The way our different groups approached the exercise was interesting. We (the U.S. group) made incredibly detailed, itemized lists of everything we spend, including luxury items and recreation costs, and still came up spending slightly less than we make. The Mexico group, on the other hand, factored in just those things they would need to live a “decent” life: 3 meals a day, rent, utilities, transportation, healthcare, and education for their children – their cost of living did not reflect luxury items or recreation costs and, moreover, described what they need to live, rather than what they are actually currently capable of spending.
At the end, the U.S. group had determined that the average income between us ( a group of working college students who factor financial aid into our income) was $77.77 per day, while our cost of living was $68.20 per day…and our household size, for the most part was one.
Written up on the white board, these numbers contrasted starkly with those of the women of the cooperative. We knew that many of them made between $5 and $7 per day working 10-12 hour days in the maquiladoras – which is still higher than the Mexican minimum wage of about $4 a day, but definitely not enough to get by on. After the workshop, we realized just how far this money goes (or rather, doesn’t), as the women’s cost of living was around $30 a day for households sized about 5 members, on average.
Get that? Income=$5, Living Cost=$30.
So how does that play out in reality? What gets cut when a family doesn’t have enough money to cover its basic expenses? Education, usually…healthcare, utilities, food…things a family shouldn’t have to give up when there people living just across a fabricated border who are spending three times that much money individually…
The co-op members’ determined cost of living, then, was the starting point for our discussion on wages. A fair wage, Vero offered, was one that allowed these women to live a decent life. In this local context, that wage had to be at or above the $30 per day that they need in order to give their families that decent life. By those standards, then, a “fair “ wage is a living wage.
We then determined that this wage that they were proposing (which came out to about $4 per hour) was about 750 percent higher than the Mexican minimum wage, and 98 percent higher than the non-poverty. Hmmm.
Given that, they were pretty happy to hear that, based on the research we had done (fair wage calculator, Economist Intelligence Unit country reports, El Paso Regional Economic Development Corporation figures), we were prepared to offer $5 per hour as a starting point – a figure that comes out to be over 900 percent higher than the Mexican minimum wage, and about 150 percent higher than the non-poverty wage.
Happy solution, huh? Well, doesn’t really feel that way.
It’s easy to look at these numbers scrawled on a white board and feel provoked by the extent of the economic inequality there…but more is required of us than recognition followed by a short-term visceral response. We must ask ourselves, and each other, why it is this way? Easy, right? Because it’s the United States – the richest country in the word – and because it’s Mexico – even, still, a developing country.
But that’s not it. The United States and Mexico didn’t hatch from an egg with economic inequalities inherent and fully formed. People – individuals, organizations, institutions – are responsible for creating and then fostering that inequality. And people – individuals, organizations, institutions – are responsible for correcting it.
At the end of our meeting with the cooperative, a few of the members made some comments, expressing their gratitude…which we all appreciated, I’m sure, but which made me slightly uncomfortable. After all, we (LOH, I mean) didn’t choose to be born in the States, and didn’t earn the chance to go to college and make good money and get financial aid and write grant proposals. And Vero and Vera and Laura and everyone else from the cooperative didn’t choose to be born in Mexico, nor did they do anything to deserve the economic inequalities with which they were born. As my dad used to say, we owe everything to the accident of birth.
Here’s some interesting info….Something like 20 percent of the world’s population owns 90 percent of the world’s wealth; stated differently – 80 percent of the world’s population shares only 10 percent of the world’s wealth. Newsflash: There isn’t an infinite amount of money and resources in the world. Even if that 80 percent of our population worked round the clock in an effort to pick themselves up by their own bootstraps (undoubtedly most do this anyway), they still wouldn’t get anywhere as long as that top 20 percent kept hoarding the money it already had.
So…does that mean that retaining wealth- or the very act of being wealthy – is immoral, because that privilege unjustly deprives others of opportunity? Uh…YEAH.
The crux of the matter is this: wealth redistribution whether on a large scale or on the small scale that we’re doing it on, ought to be the norm. We have a responsibility to correct these structural inequalities that we were socialized to believe were natural – if for no other reason than the ignoble recognition that Fortune could have dealt our cards differently; that we could have been born in poverty while others enjoyed our current luxuries.






