HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES MEXICO, 1975-2004 I ALL MANUFACTURING INDUSTRIES, 1975-2004 II MAQUILADORA MANUFACTURING EXPORT INDUSTRIES, 1975-2004 Hourly compensation data for all manufacturing industries in Mexico (I) are as published in the BLS report “Hourly Compensation Costs for Production Workers in Manufacturing, 32 Countries or Areas, 22 Manufacturing Industries, 1992-2004” (). These data are based on the North American Industry Classification System (NAICS). Hourly compensation data for maquiladora manufacturing export industries in Mexico (II) are not included in the above BLS report. These data are reported here using a classification system unique to maquiladora establishments, and are therefore not directly comparable to the data in Section I. A "maquiladora" refers to a Mexican firm (often foreign-owned) operating under a special customs program which allows the maquiladora to temporarily import into Mexico on a duty free (in-bond) basis capital and intermediary goods needed for the assembly or manufacture of goods or services for export. Maquiladora data presented in the tables reflect only maquiladora manufacturing. PREPARED BY: U.S. DEPARTMENT OF LABOR, BUREAU OF LABOR STATISTICS, OFFICE OF PRODUCTIVITY AND TECHNOLOGY, MAY 19, 2006. PAGE 1 Introduction The accompanying tables present hourly compensation costs in Mexico for production workers in (I) all manufacturing industries (including maquiladora manufacturing) and in (II) maquiladora manufacturing export industries. The total compensation measures are prepared by the Bureau of Labor Statistics (BLS) in order to provide a better basis for assessing differences in employer labor costs. BLS produces compensation measures for both all manufacturing industries and maquiladora manufacturing export industries using data published by Mexico's central statistical office, the National Institute of Statistics, Geography, and Informatics (Instituto Nacional de EstadÍstica GeografÍa e InformÁtica, or INEGI). The figures are computed in pesos and are converted into U.S. dollars at prevailing commercial market currency exchange rates. They are appropriate measures for assessing levels of employer labor costs. They do not indicate relative living standards of workers or the purchasing power of their income. Prices of goods and services vary greatly among countries, and commercial market exchange rates are not reliable indicators of relative differences in prices. The next two sections provide a description of the specific definitions and methods used by BLS in the construction of hourly compensation estimates for Mexico. These definitions and methods correspond with those used and generally described in the BLS report “Hourly Compensation Costs for Production Workers in Manufacturing, 32 Countries or Areas, 22 Manufacturing Industries, 1992-2004” (). This is followed by a discussion of data limitations and a discussion of the difference between labor costs and labor income. Definitions For Mexican all manufacturing industries and maquiladora manufacturing export industries, hourly compensation costs include (1) total direct pay and (2) employer social insurance expenditures. Total direct pay refers to production workers and includes all payments made directly to the worker, before payroll deductions of any kind, consisting of (a) pay for time worked and (b) other direct pay. Pay for time worked includes basic time and piece rates plus overtime premiums, shift differentials, and other premiums and bonuses paid regularly each pay period. Other direct pay includes pay for time not worked (vacation, holiday, sick and other leave), incentive pay, vacation and production bonuses, and seasonal “aguinaldo” and other irregular bonuses. Aguinaldo bonuses are legally and contractually mandated end-of-year payments made to workers before December 20th each year. The bonus PAGE 2 amount is equal to approximately one month's average earnings and is considered part of basic wages. Total direct pay is computed per hour worked. Hours worked constitute regular hours and overtime hours and include time spent preparing for labor or waiting due to maintenance or technical problems. Hours worked exclude leave time and time lost due to natural disasters, strikes, and other labor conflicts. Employer social insurance expenditures refer to all employees (wage production workers plus salaried employees) and include employer expenditures for (a) legally required insurance programs and contractual and private benefit plans and (b) other social allowances. Legally required employer contributions include payments to social security funds such as IMSS and ISSSTE (private and public sector funds, respectively, covering old age, disability, work injury, sickness, and maternity) and INFONAVIT (a national housing fund). Employer payments for contractual and private benefits include those for supplemental retirement or pension funds and profit sharing distributions. Other social allowances refer to other payments made directly to the worker whether in cash, services, or kind, including (i) food and tuition allowances, (ii) premiums for supplemental insurance, and (iii) food, medical, educational, and daycare services. For all manufacturing industries, production workers generally include those employees who are engaged in fabricating, assembly, and related activities; material handling, warehousing, and shipping; maintenance and repair; janitorial and guard services; auxiliary production (for example, power plants); and other services closely related to the above activities. Working supervisors are generally included; apprentices and other trainees are generally excluded. For maquiladora manufacturing export industries, production workers are defined as above, but excluding supervisors and technical production workers involved in supervisory, quality control, and other managerial tasks. A "maquiladora" refers to a Mexican firm (often foreign-owned) operating under a special customs program which allows the maquiladora to temporarily import into Mexico on a duty free (in-bond) basis capital and intermediary goods needed for the assembly or manufacture of goods or services for export. Maquiladora data presented in the tables reflect only maquiladora manufacturing. Methods The Bureau of Labor Statistics computes hourly compensation from total direct pay data published by Mexico's National Institute of Statistics, Geography, and Informatics PAGE 3 (INEGI). BLS adjusts these data for additional items of compensation not included in direct pay, such as employer expenditures for legally required social insurance, for contractual and private benefit plans, and for other social allowances. For compensation measures relating to all Mexican manufacturing industries, total direct pay and social insurance benefits statistics are obtained from INEGI's economic censuses and Monthly and Annual Industrial Surveys. BLS benchmarks all compensation measures to quinquennial economic censuses, which cover all industries and all establishments, including manufacturing establishments registered as maquiladoras. Compensation data for non-census years are estimated by interpolating between and extrapolating from census benchmarks using statistics from the Monthly and Annual Industrial Surveys, which exclude the maquiladora export sector, some manufacturing industries, and most small establishments. The Monthly Industrial Survey sample was expanded and the industry classification revised in 1994. For maquiladora manufacturing export industries, total direct pay and social insurance data are obtained from a monthly census of all establishments registered as export maquiladoras. Annual hourly compensation estimates are developed directly from monthly census data. Estimates reflect only those establishments participating in maquiladora export manufacturing; maquiladoras classified as providing services are not included. Total direct pay data are for production workers, while data on employer social insurance expenditures are for all employees (wage production workers plus administrative and other salaried employees). The ratio of social insurance expenditures to total direct pay for all employees is applied to total direct pay for production workers to estimate total hourly compensation for production workers. BLS also adjusts published INEGI statistics, where necessary, to account for major differences in industrial classification and changes over time in survey coverage, sample benchmarks, or frequency of surveys. In particular, Monthly and Annual Industrial Survey data used in computing all manufacturing compensation measures are reported by INEGI using the 1994 Mexican Classification of Activities and Products (ClasificaciÓn Mexicana de Actividades y Productos, CMAP 1994). BLS adjusts data from these surveys to correspond closely to NAICS industry definitions, although some differences in industrial coverage remain. BLS does not make industrial classification adjustments to maquiladora export manufacturing data published by INEGI; these data are reported using a classification system unique to maquiladora establishments that does not correspond to NAICS industry definitions. Hourly compensation is converted from pesos to U.S. dollars using the average daily exchange rate for the reference period. Changes in hourly compensation in U.S. dollars from one period to another are therefore affected by changes in currency exchange rates PAGE 4 as well as by changes in hourly compensation in pesos. The exchange rates used are prevailing commercial market exchange rates as published by the U.S. Federal Reserve Board. The exchange rates used are shown on the tables. Data Limitations Because hourly compensation is partly estimated, the statistics should not be considered as precise measures of compensation costs. In addition, the figures are subject to revision as new data used to estimate total compensation become available. Hourly compensation cost estimates for maquiladora export manufacturing (Section II) cannot be directly compared to such estimates for all manufacturing (Section I): the underlying data sets used in the construction of each series differ with respect to the definition of production workers and the industrial classification system used. First, production worker data for maquiladora export manufacturing exclude supervisory and technical workers related to production, while production worker data for all manufacturing include these workers. As supervisory and technical employees are typically compensated at higher rates, maquiladora production worker hourly compensation estimates will tend to be understated in comparison to such estimates for all manufacturing industries. Second, Mexico's industry classification for maquiladora establishments is limited to ten manufacturing categories and does not correspond with the industry classification used for all manufacturing (NAICS). The maquiladora industry mix also differs substantially from the all manufacturing industry mix, involving assembly of foreign supplied materials and components for export. Maquiladora export industry hourly compensation data in Section II are therefore not directly comparable to the all manufacturing NAICS-based series in Section I. Labor Costs Versus Labor Income The hourly compensation figures in U.S. dollars shown in the tables provide measures of employer labor costs; they do not provide measures of the purchasing power of worker incomes. Prices of goods and services vary greatly among countries, and the commercial market exchange rates used to assess employer labor costs are not reliable indicators of relative differences in prices. Purchasing power parities--that is, the number of foreign currency units required to buy goods and services equivalent to what can be purchased with one unit of U.S. or other base-country currency--must be used for meaningful international comparisons of the relative purchasing power of worker incomes. PAGE 5 Total compensation converted to U.S. dollars at purchasing power parities would provide one measure for comparing relative real levels of labor income. It should be noted, however, that total compensation includes employer payments to funds for the benefit of workers in addition to payments made directly to workers. Payments into these funds provide either deferred income (e.g., payments to retirement funds), a type of insurance (e.g., payments to unemployment or health benefit funds), or current social benefits (e.g., family allowances), and the relationship between employer payments and current or future worker benefits is indirect. On the other hand, the exclusion of these payments would understate the total value of income derived from work since they substitute for worker savings or self-insurance to cover retirement, medical costs, etc. Total compensation, since it takes account of employer payments into funds for the benefit of workers, is a broader income concept than either total direct earnings or direct spendable earnings. An even broader concept would take account of all social benefits available to workers, including those financed out of general revenues as well as those financed through employment or payroll taxes. HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 6 MEXICO, 1975-2004 I ALL MANUFACTURING INDUSTRIES ALL MANUFACTURING ------------------------------------------------------------------------------------------------------ HOURLY EXCHANGE RATE: HOURLY YEAR COMPENSATION PESOS PER COMPENSATION COSTS IN U.S. DOLLAR COSTS IN PESOS U.S. DOLLARS ------------------------------------------------------------------------------------------------------ 1975 18.18 12.50 1.45 1976 23.44 14.46 1.62 1977 30.00 22.60 1.33 1978 36.63 22.78 1.61 1979 43.07 22.82 1.89 1980 50.24 22.97 2.19 1981 68.54 24.52 2.80 1982 110.1 56.40 1.95 1983 168.4 120.1 1.40 1984 259.5 167.8 1.55 1985 404.8 256.9 1.58 1986 660.4 611.8 1.08 1987 1423 1378 1.03 1988 2807 2273 1.23 1989 3475 2461 1.41 1990 4397 2813 1.56 1991 5487 3018 1.82 1992 6565 3095 2.12 1993 7.45 3.116 2.39 1994 8.14 3.375 2.41 1995 9.42 6.419 1.47 1996 11.05 7.600 1.45 1997 12.88 7.918 1.63 1998 15.02 9.152 1.64 1999 17.82 9.553 1.87 2000 20.81 9.459 2.20 2001 23.74 9.337 2.54 2002 25.14 9.663 2.60 2003 26.88 10.79 2.49 2004 28.22 11.29 2.50 ------------------------------------------------------------------------------------------------------ See notes at end of tables. HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 7 MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES INDEX: ALL MANUFACTURING = 100 -------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1991 1992 1993 1994 1995 1996 1997 1998 -------------------------------------------------------------------------------------------------------------------------------- MANUFACTURING 100 100 100 100 100 100 100 100 FOOD, BEVERAGE, AND TOBACCO PRODUCT MANUFACTURING (NAICS 311-312) .. 84 85 90 86 91 91 87 TEXTILES AND TEXTILE PRODUCTS MANUFACTURING (NAICS 313-314) .. 110 106 107 101 98 99 99 APPAREL MANUFACTURING (NAICS 315) .. 60 59 61 59 60 61 62 TEXTILES AND APPAREL MANUFACTURING (NAICS 313-315) .. 83 80 79 75 74 74 73 LEATHER AND ALLIED PRODUCTS MANUFACTURING (NAICS 316) .. 97 89 87 77 74 70 72 TEXTILES, APPAREL AND ALLIED PRODUCTS MANUFACTURING (NAICS 313-316) .. 86 82 81 75 74 73 73 WOOD PRODUCT MANUFACTURING (NAICS 321) .. 63 62 60 60 63 63 64 PAPER MANUFACTURING (NAICS 322) .. 120 117 109 105 108 110 108 PETROLEUM AND COAL PRODUCTS MANUFACTURING (NAICS 324) .. 241 249 262 266 247 231 208 CHEMICAL MANUFACTURING (NAICS 325) .. 177 179 183 193 204 211 211 PLASTICS AND RUBBER PRODUCTS MANUFACTURING (NAICS 326) .. 111 106 100 99 98 100 101 NONMETALLIC MINERAL PRODUCT MANUFACTURING (NAICS 327) .. 100 102 103 104 103 98 103 PRIMARY METAL MANUFACTURING (NAICS 331) .. 128 123 128 130 135 143 146 FABRICATED METAL PRODUCT MANUFACTURING (NAICS 332) .. 91 92 95 98 93 91 89 PRIMARY AND FABRICATED METAL PRODUCTS MANUFACTURING (NAICS 331-332) .. 105 103 106 109 107 107 104 MACHINERY MANUFACTURING (NAICS 333) .. 115 118 113 114 109 105 103 COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING (NAICS 334) .. 93 91 88 100 98 92 100 ELECTRICAL EQUIPMENT, APPLIANCE, AND COMPONENT MANUFACTURING (NAICS 335) .. 94 92 88 94 97 101 102 TRANSPORTATION EQUIPMENT MANUFACTURING (NAICS 336) .. 119 120 122 126 125 131 134 MOTOR VEHICLE AND PARTS MANUFACTURING (NAICS 3361-3363) .. 122 122 124 128 126 132 135 FURNITURE AND RELATED PRODUCT MANUFACTURING (NAICS 337) .. 67 69 68 69 70 70 73 -------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) (3) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 8 MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES INDEX: ALL MANUFACTURING = 100 ------------------------------------------------------------------------------------------------------------------ INDUSTRY 1999 2000 2001 2002 2003 2004 ------------------------------------------------------------------------------------------------------------------ MANUFACTURING 100 100 100 100 100 100 FOOD, BEVERAGE, AND TOBACCO PRODUCT MANUFACTURING (NAICS 311-312) 88 88 87 91 90 89 TEXTILES AND TEXTILE PRODUCTS MANUFACTURING (NAICS 313-314) 94 95 93 95 93 92 APPAREL MANUFACTURING (NAICS 315) 62 63 61 61 61 62 TEXTILES AND APPAREL MANUFACTURING (NAICS 313-315) 72 74 72 73 72 72 LEATHER AND ALLIED PRODUCTS MANUFACTURING (NAICS 316) 71 71 72 69 73 75 TEXTILES, APPAREL AND ALLIED PRODUCTS MANUFACTURING (NAICS 313-316) 72 73 72 72 72 73 WOOD PRODUCT MANUFACTURING (NAICS 321) 62 61 60 63 66 63 PAPER MANUFACTURING (NAICS 322) 108 105 104 104 102 101 PETROLEUM AND COAL PRODUCTS MANUFACTURING (NAICS 324) 191 193 181 185 187 186 CHEMICAL MANUFACTURING (NAICS 325) 208 207 206 204 199 196 PLASTICS AND RUBBER PRODUCTS MANUFACTURING (NAICS 326) 104 102 88 84 85 84 NONMETALLIC MINERAL PRODUCT MANUFACTURING (NAICS 327) 101 100 103 107 108 108 PRIMARY METAL MANUFACTURING (NAICS 331) 141 139 136 132 133 135 FABRICATED METAL PRODUCT MANUFACTURING (NAICS 332) 89 92 92 94 96 95 PRIMARY AND FABRICATED METAL PRODUCTS MANUFACTURING (NAICS 331-332) 102 104 103 104 106 106 MACHINERY MANUFACTURING (NAICS 333) 106 104 99 101 104 105 COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING (NAICS 334) 104 97 107 92 98 98 ELECTRICAL EQUIPMENT, APPLIANCE, AND COMPONENT MANUFACTURING (NAICS 335) 100 98 101 106 103 101 TRANSPORTATION EQUIPMENT MANUFACTURING (NAICS 336) 135 137 142 141 140 140 MOTOR VEHICLE AND PARTS MANUFACTURING (NAICS 3361-3363) 135 138 143 142 141 140 FURNITURE AND RELATED PRODUCT MANUFACTURING (NAICS 337) 75 75 77 79 79 81 ------------------------------------------------------------------------------------------------------------------ See notes (1) (2) (3) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 9 MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES COMPENSATION MEASURED IN U.S. DOLLARS -------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1991 1992 1993 1994 1995 1996 1997 1998 -------------------------------------------------------------------------------------------------------------------------------- MANUFACTURING 1.82 2.12 2.39 2.41 1.47 1.45 1.63 1.64 FOOD, BEVERAGE, AND TOBACCO PRODUCT MANUFACTURING (NAICS 311-312) .. 1.79 2.04 2.17 1.26 1.32 1.49 1.42 TEXTILES AND TEXTILE PRODUCTS MANUFACTURING (NAICS 313-314) .. 2.33 2.54 2.59 1.49 1.43 1.62 1.62 APPAREL MANUFACTURING (NAICS 315) .. 1.27 1.42 1.48 0.87 0.87 0.99 1.01 TEXTILES AND APPAREL MANUFACTURING (NAICS 313-315) .. 1.75 1.92 1.91 1.09 1.07 1.21 1.20 LEATHER AND ALLIED PRODUCTS MANUFACTURING (NAICS 316) .. 2.06 2.12 2.09 1.13 1.07 1.14 1.18 TEXTILES, APPAREL AND ALLIED PRODUCTS MANUFACTURING (NAICS 313-316) .. 1.82 1.97 1.94 1.10 1.07 1.19 1.20 WOOD PRODUCT MANUFACTURING (NAICS 321) .. 1.35 1.49 1.43 0.88 0.92 1.03 1.04 PAPER MANUFACTURING (NAICS 322) .. 2.54 2.81 2.64 1.54 1.57 1.79 1.77 PETROLEUM AND COAL PRODUCTS MANUFACTURING (NAICS 324) .. 5.10 5.95 6.31 3.90 3.58 3.75 3.41 CHEMICAL MANUFACTURING (NAICS 325) .. 3.76 4.29 4.42 2.83 2.97 3.43 3.47 PLASTICS AND RUBBER PRODUCTS MANUFACTURING (NAICS 326) .. 2.35 2.55 2.41 1.46 1.42 1.63 1.66 NONMETALLIC MINERAL PRODUCT MANUFACTURING (NAICS 327) .. 2.13 2.44 2.49 1.52 1.50 1.59 1.69 PRIMARY METAL MANUFACTURING (NAICS 331) .. 2.72 2.93 3.08 1.91 1.97 2.33 2.40 FABRICATED METAL PRODUCT MANUFACTURING (NAICS 332) .. 1.93 2.20 2.30 1.44 1.35 1.48 1.46 PRIMARY AND FABRICATED METAL PRODUCTS MANUFACTURING (NAICS 331-332) .. 2.24 2.47 2.56 1.60 1.55 1.74 1.71 MACHINERY MANUFACTURING (NAICS 333) .. 2.43 2.81 2.72 1.68 1.58 1.72 1.69 COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING (NAICS 334) .. 1.98 2.18 2.13 1.46 1.43 1.50 1.65 ELECTRICAL EQUIPMENT, APPLIANCE, AND COMPONENT MANUFACTURING (NAICS 335) .. 2.00 2.20 2.13 1.37 1.41 1.64 1.68 TRANSPORTATION EQUIPMENT MANUFACTURING (NAICS 336) .. 2.53 2.88 2.95 1.85 1.81 2.12 2.20 MOTOR VEHICLE AND PARTS MANUFACTURING (NAICS 3361-3363) .. 2.59 2.92 2.99 1.87 1.83 2.14 2.21 FURNITURE AND RELATED PRODUCT MANUFACTURING (NAICS 337) .. 1.42 1.65 1.64 1.01 1.01 1.14 1.20 -------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) (3) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 10 MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES COMPENSATION MEASURED IN U.S. DOLLARS ------------------------------------------------------------------------------------------------------------------ INDUSTRY 1999 2000 2001 2002 2003 2004 ------------------------------------------------------------------------------------------------------------------ MANUFACTURING 1.87 2.20 2.54 2.60 2.49 2.50 FOOD, BEVERAGE, AND TOBACCO PRODUCT MANUFACTURING (NAICS 311-312) 1.64 1.93 2.22 2.36 2.24 2.22 TEXTILES AND TEXTILE PRODUCTS MANUFACTURING (NAICS 313-314) 1.76 2.09 2.35 2.47 2.31 2.30 APPAREL MANUFACTURING (NAICS 315) 1.15 1.39 1.55 1.59 1.52 1.56 TEXTILES AND APPAREL MANUFACTURING (NAICS 313-315) 1.35 1.62 1.82 1.89 1.78 1.81 LEATHER AND ALLIED PRODUCTS MANUFACTURING (NAICS 316) 1.33 1.57 1.82 1.81 1.81 1.86 TEXTILES, APPAREL AND ALLIED PRODUCTS MANUFACTURING (NAICS 313-316) 1.35 1.62 1.82 1.88 1.79 1.82 WOOD PRODUCT MANUFACTURING (NAICS 321) 1.16 1.34 1.53 1.63 1.64 1.59 PAPER MANUFACTURING (NAICS 322) 2.02 2.32 2.66 2.69 2.54 2.53 PETROLEUM AND COAL PRODUCTS MANUFACTURING (NAICS 324) 3.56 4.25 4.60 4.81 4.66 4.65 CHEMICAL MANUFACTURING (NAICS 325) 3.88 4.55 5.23 5.30 4.96 4.91 PLASTICS AND RUBBER PRODUCTS MANUFACTURING (NAICS 326) 1.94 2.25 2.25 2.18 2.11 2.09 NONMETALLIC MINERAL PRODUCT MANUFACTURING (NAICS 327) 1.89 2.20 2.61 2.78 2.68 2.71 PRIMARY METAL MANUFACTURING (NAICS 331) 2.63 3.05 3.45 3.44 3.31 3.37 FABRICATED METAL PRODUCT MANUFACTURING (NAICS 332) 1.66 2.02 2.34 2.44 2.39 2.37 PRIMARY AND FABRICATED METAL PRODUCTS MANUFACTURING (NAICS 331-332) 1.91 2.29 2.62 2.71 2.65 2.65 MACHINERY MANUFACTURING (NAICS 333) 1.98 2.30 2.52 2.63 2.60 2.62 COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING (NAICS 334) 1.93 2.14 2.71 2.41 2.44 2.44 ELECTRICAL EQUIPMENT, APPLIANCE, AND COMPONENT MANUFACTURING (NAICS 335) 1.87 2.16 2.58 2.76 2.58 2.52 TRANSPORTATION EQUIPMENT MANUFACTURING (NAICS 336) 2.51 3.02 3.61 3.68 3.49 3.50 MOTOR VEHICLE AND PARTS MANUFACTURING (NAICS 3361-3363) 2.53 3.03 3.63 3.68 3.50 3.50 FURNITURE AND RELATED PRODUCT MANUFACTURING (NAICS 337) 1.40 1.65 1.96 2.07 1.97 2.03 ------------------------------------------------------------------------------------------------------------------ See notes (1) (2) (3) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 11 MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES COMPENSATION MEASURED IN PESOS -------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1991 1992 1993 1994 1995 1996 1997 1998 -------------------------------------------------------------------------------------------------------------------------------- MANUFACTURING 5487 6565 7.45 8.14 9.42 11.05 12.88 15.02 FOOD, BEVERAGE, AND TOBACCO PRODUCT MANUFACTURING (NAICS 311-312) .. 5542 6.36 7.33 8.08 10.00 11.78 13.01 TEXTILES AND TEXTILE PRODUCTS MANUFACTURING (NAICS 313-314) .. 7214 7.91 8.73 9.56 10.87 12.80 14.81 APPAREL MANUFACTURING (NAICS 315) .. 3936 4.43 5.00 5.59 6.64 7.83 9.24 TEXTILES AND APPAREL MANUFACTURING (NAICS 313-315) .. 5424 5.99 6.43 7.03 8.14 9.54 11.01 LEATHER AND ALLIED PRODUCTS MANUFACTURING (NAICS 316) .. 6371 6.62 7.05 7.25 8.15 9.04 10.84 TEXTILES, APPAREL AND ALLIED PRODUCTS MANUFACTURING (NAICS 313-316) .. 5641 6.12 6.56 7.07 8.14 9.45 10.98 WOOD PRODUCT MANUFACTURING (NAICS 321) .. 4164 4.63 4.84 5.67 7.00 8.17 9.54 PAPER MANUFACTURING (NAICS 322) .. 7866 8.74 8.90 9.91 11.91 14.16 16.19 PETROLEUM AND COAL PRODUCTS MANUFACTURING (NAICS 324) .. 15791 18.56 21.29 25.01 27.23 29.71 31.20 CHEMICAL MANUFACTURING (NAICS 325) .. 11634 13.37 14.93 18.18 22.54 27.18 31.75 PLASTICS AND RUBBER PRODUCTS MANUFACTURING (NAICS 326) .. 7268 7.93 8.12 9.34 10.82 12.91 15.23 NONMETALLIC MINERAL PRODUCT MANUFACTURING (NAICS 327) .. 6595 7.60 8.39 9.77 11.37 12.58 15.48 PRIMARY METAL MANUFACTURING (NAICS 331) .. 8419 9.14 10.40 12.29 14.95 18.46 21.99 FABRICATED METAL PRODUCT MANUFACTURING (NAICS 332) .. 5979 6.86 7.75 9.22 10.28 11.74 13.34 PRIMARY AND FABRICATED METAL PRODUCTS MANUFACTURING (NAICS 331-332) .. 6921 7.71 8.65 10.29 11.79 13.76 15.61 MACHINERY MANUFACTURING (NAICS 333) .. 7527 8.76 9.18 10.76 12.05 13.59 15.48 COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING (NAICS 334) .. 6119 6.79 7.19 9.38 10.85 11.89 15.07 ELECTRICAL EQUIPMENT, APPLIANCE, AND COMPONENT MANUFACTURING (NAICS 335) .. 6193 6.87 7.20 8.82 10.68 12.96 15.35 TRANSPORTATION EQUIPMENT MANUFACTURING (NAICS 336) .. 7835 8.97 9.95 11.87 13.77 16.81 20.12 MOTOR VEHICLE AND PARTS MANUFACTURING (NAICS 3361-3363) .. 8018 9.09 10.10 12.02 13.91 16.95 20.22 FURNITURE AND RELATED PRODUCT MANUFACTURING (NAICS 337) .. 4402 5.13 5.53 6.50 7.68 9.03 10.99 -------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) (3) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 12 MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES COMPENSATION MEASURED IN PESOS ------------------------------------------------------------------------------------------------------------------ INDUSTRY 1999 2000 2001 2002 2003 2004 ------------------------------------------------------------------------------------------------------------------ MANUFACTURING 17.82 20.81 23.74 25.14 26.88 28.22 FOOD, BEVERAGE, AND TOBACCO PRODUCT MANUFACTURING (NAICS 311-312) 15.69 18.21 20.70 22.76 24.18 25.07 TEXTILES AND TEXTILE PRODUCTS MANUFACTURING (NAICS 313-314) 16.81 19.76 21.98 23.83 24.96 25.97 APPAREL MANUFACTURING (NAICS 315) 10.99 13.10 14.46 15.35 16.38 17.64 TEXTILES AND APPAREL MANUFACTURING (NAICS 313-315) 12.87 15.37 17.02 18.26 19.23 20.41 LEATHER AND ALLIED PRODUCTS MANUFACTURING (NAICS 316) 12.74 14.84 17.00 17.47 19.50 21.03 TEXTILES, APPAREL AND ALLIED PRODUCTS MANUFACTURING (NAICS 313-316) 12.85 15.28 17.02 18.12 19.28 20.53 WOOD PRODUCT MANUFACTURING (NAICS 321) 11.12 12.68 14.30 15.72 17.67 17.90 PAPER MANUFACTURING (NAICS 322) 19.26 21.91 24.80 26.04 27.44 28.54 PETROLEUM AND COAL PRODUCTS MANUFACTURING (NAICS 324) 34.00 40.21 42.93 46.51 50.34 52.49 CHEMICAL MANUFACTURING (NAICS 325) 37.08 43.07 48.84 51.23 53.49 55.44 PLASTICS AND RUBBER PRODUCTS MANUFACTURING (NAICS 326) 18.54 21.24 20.98 21.03 22.82 23.60 NONMETALLIC MINERAL PRODUCT MANUFACTURING (NAICS 327) 18.08 20.78 24.37 26.86 28.90 30.59 PRIMARY METAL MANUFACTURING (NAICS 331) 25.12 28.86 32.21 33.25 35.76 38.06 FABRICATED METAL PRODUCT MANUFACTURING (NAICS 332) 15.90 19.14 21.84 23.62 25.82 26.75 PRIMARY AND FABRICATED METAL PRODUCTS MANUFACTURING (NAICS 331-332) 18.27 21.63 24.50 26.15 28.55 29.95 MACHINERY MANUFACTURING (NAICS 333) 18.91 21.73 23.49 25.39 28.02 29.58 COMPUTER AND ELECTRONIC PRODUCT MANUFACTURING (NAICS 334) 18.46 20.20 25.33 23.24 26.29 27.55 ELECTRICAL EQUIPMENT, APPLIANCE, AND COMPONENT MANUFACTURING (NAICS 335) 17.82 20.46 24.05 26.67 27.81 28.50 TRANSPORTATION EQUIPMENT MANUFACTURING (NAICS 336) 24.02 28.58 33.69 35.52 37.70 39.48 MOTOR VEHICLE AND PARTS MANUFACTURING (NAICS 3361-3363) 24.14 28.70 33.86 35.59 37.82 39.48 FURNITURE AND RELATED PRODUCT MANUFACTURING (NAICS 337) 13.33 15.65 18.33 19.97 21.27 22.90 ------------------------------------------------------------------------------------------------------------------ See notes (1) (2) (3) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 PAGE 13 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES MEXICO, 1991-2004 I ALL MANUFACTURING INDUSTRIES (1) Manufacturing industries for Mexico are classified according to the North American Industry Classification System (NAICS). (2) Mexico's currency was converted in January 1993 to 1 new peso = 1,000 old pesos. (3) 1998 hourly compensation per production worker estimates are based on total direct pay, social insurance benefits, employment, and hours worked data from the 1999 Industrial Census, which covers all industries and all size establishments, including manufacturing establishments registered as maquiladoras. 1999-2004 estimates are extrapolated from the Census using total direct pay, social insurance, employment, and hours worked data from the Monthly Industrial Survey, which excludes the maquiladora export sector, some manufacturing industries, and most small establishments. 1975, 1985, 1988, and 1993 hourly compensation per production worker estimates are based on total direct pay, social insurance benefits, and employment data from the 1976, 1986, 1989, and 1994, Industrial Censuses, respectively. Hours data, however, were not collected by the Census in these years. 1975 hours data are obtained from the 1975 Monthly Industrial Survey; 1985, 1988, and 1993 hours worked data are obtained from the Annual Industrial Survey for corresponding years. Hourly compensation figures for 1976-1984, 1989-1992, and 1994-1997 are estimated by interpolating between Census benchmarks using data from the Monthly Industrial Survey. Figures for 1986-1987 are similarly estimated using Annual Industrial Survey data. HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 14 MAQUILADORAS, 1975-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES ALL MAQUILADORA MANUFACTURING ------------------------------------------------------------------------------------------------------ HOURLY EXCHANGE RATE: HOURLY YEAR COMPENSATION PESOS PER COMPENSATION COSTS IN U.S. DOLLAR COSTS IN PESOS U.S. DOLLARS ------------------------------------------------------------------------------------------------------ 1975 12 12.50 0.96 1976 17 14.46 1.18 1977 22 22.60 0.97 1978 24 22.78 1.05 1979 28 22.82 1.23 1980 32 22.97 1.39 1981 41 24.52 1.67 1982 69 56.40 1.22 1983 109 120.1 0.91 1984 176 167.8 1.05 1985 276 256.9 1.07 1986 490 611.8 0.80 1987 1114 1378 0.81 1988 2238 2273 0.98 1989 2836 2461 1.15 1990 3539 2813 1.26 1991 4388 3018 1.45 1992 5047 3095 1.63 1993 5.53 3.116 1.77 1994 6.14 3.375 1.82 1995 7.50 6.419 1.17 1996 9.26 7.600 1.22 1997 12.14 7.918 1.53 1998 14.40 9.152 1.57 1999 16.84 9.553 1.76 2000 19.28 9.459 2.04 2001 22.42 9.337 2.40 2002 24.70 9.663 2.56 2003 25.54 10.79 2.37 2004 26.23 11.29 2.32 ------------------------------------------------------------------------------------------------------ See notes at end of tables. HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 15 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES INDEX: ALL MANUFACTURING = 100 --------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 --------------------------------------------------------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 100 100 100 100 100 100 100 100 100 100 100 FOOD AND RELATED PRODUCTS .. 103 100 101 106 96 79 86 80 76 74 APPAREL AND OTHER TEXTILE PRODUCTS .. 94 88 90 87 81 86 82 82 77 77 FOOTWEAR AND LEATHER PRODUCTS .. 116 122 116 104 103 102 102 96 90 84 FURNITURE AND FIXTURES .. 116 115 99 94 99 101 105 106 102 99 CHEMICALS AND CHEMICAL PRODUCTS .. .. .. .. .. 104 123 102 91 99 88 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC .. 94 107 100 116 139 124 128 125 117 131 ELECTRIC AND ELECTRONIC EQUIPMENT .. 100 98 100 99 100 99 100 103 104 103 TRANSPORTATION EQUIPMENT .. 109 107 119 113 113 110 110 106 111 110 TOYS AND SPORTING GOODS .. 109 105 106 94 105 100 94 102 113 111 OTHER MANUFACTURING .. 106 112 100 102 101 96 92 91 86 86 --------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 16 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES INDEX: ALL MANUFACTURING = 100 --------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 --------------------------------------------------------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 100 100 100 100 100 100 100 100 100 100 100 FOOD AND RELATED PRODUCTS 77 81 79 80 83 83 76 72 74 78 78 APPAREL AND OTHER TEXTILE PRODUCTS 81 78 77 75 74 72 70 70 71 72 72 FOOTWEAR AND LEATHER PRODUCTS 87 86 93 96 94 93 96 95 91 98 93 FURNITURE AND FIXTURES 99 95 96 99 101 96 95 105 108 109 109 CHEMICALS AND CHEMICAL PRODUCTS 94 91 89 89 90 92 98 99 99 99 103 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC 127 136 133 136 146 134 121 125 130 126 126 ELECTRIC AND ELECTRONIC EQUIPMENT 102 104 103 102 101 103 103 108 107 105 107 TRANSPORTATION EQUIPMENT 115 111 112 113 117 122 127 119 121 122 118 TOYS AND SPORTING GOODS 114 99 88 95 98 87 94 100 98 94 103 OTHER MANUFACTURING 89 93 95 97 94 95 98 97 100 103 103 --------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 17 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES INDEX: ALL MANUFACTURING = 100 -------------------------------------------------------------------------------- INDUSTRY 2001 2002 2003 2004 -------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 100 100 100 100 FOOD AND RELATED PRODUCTS 85 112 98 101 APPAREL AND OTHER TEXTILE PRODUCTS 73 75 78 79 FOOTWEAR AND LEATHER PRODUCTS 117 115 128 149 FURNITURE AND FIXTURES 108 103 105 107 CHEMICALS AND CHEMICAL PRODUCTS 98 98 90 96 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC 127 112 127 131 ELECTRIC AND ELECTRONIC EQUIPMENT 107 104 103 101 TRANSPORTATION EQUIPMENT 118 118 114 111 TOYS AND SPORTING GOODS 119 116 88 96 OTHER MANUFACTURING 100 100 99 102 -------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 18 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES COMPENSATION MEASURED IN U.S. DOLLARS --------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 --------------------------------------------------------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 1.23 1.39 1.67 1.22 0.91 1.05 1.07 0.80 0.81 0.98 1.15 FOOD AND RELATED PRODUCTS .. 1.44 1.67 1.24 0.96 1.01 0.85 0.69 0.65 0.75 0.86 APPAREL AND OTHER TEXTILE PRODUCTS .. 1.31 1.47 1.10 0.79 0.85 0.92 0.66 0.66 0.76 0.89 FOOTWEAR AND LEATHER PRODUCTS .. 1.61 2.04 1.42 0.94 1.08 1.09 0.82 0.78 0.89 0.97 FURNITURE AND FIXTURES .. 1.61 1.92 1.21 0.85 1.04 1.09 0.84 0.85 1.01 1.14 CHEMICALS AND CHEMICAL PRODUCTS .. .. .. .. .. 1.09 1.32 0.82 0.74 0.98 1.02 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC .. 1.31 1.79 1.22 1.05 1.45 1.33 1.02 1.01 1.15 1.51 ELECTRIC AND ELECTRONIC EQUIPMENT .. 1.39 1.63 1.22 0.90 1.05 1.07 0.80 0.83 1.02 1.19 TRANSPORTATION EQUIPMENT .. 1.52 1.79 1.45 1.02 1.19 1.18 0.88 0.86 1.09 1.27 TOYS AND SPORTING GOODS .. 1.52 1.75 1.29 0.85 1.10 1.08 0.75 0.82 1.12 1.28 OTHER MANUFACTURING .. 1.48 1.88 1.22 0.92 1.05 1.03 0.74 0.74 0.85 0.99 --------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 19 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES COMPENSATION MEASURED IN U.S. DOLLARS --------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 --------------------------------------------------------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 1.26 1.45 1.63 1.77 1.82 1.17 1.22 1.53 1.57 1.76 2.04 FOOD AND RELATED PRODUCTS 0.97 1.18 1.29 1.42 1.50 0.97 0.92 1.10 1.17 1.38 1.59 APPAREL AND OTHER TEXTILE PRODUCTS 1.01 1.13 1.26 1.33 1.35 0.84 0.85 1.08 1.11 1.27 1.47 FOOTWEAR AND LEATHER PRODUCTS 1.10 1.25 1.51 1.71 1.72 1.09 1.16 1.45 1.43 1.73 1.90 FURNITURE AND FIXTURES 1.25 1.38 1.57 1.75 1.84 1.12 1.16 1.61 1.70 1.92 2.21 CHEMICALS AND CHEMICAL PRODUCTS 1.19 1.32 1.45 1.59 1.64 1.07 1.20 1.51 1.55 1.74 2.09 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC 1.59 1.98 2.17 2.40 2.66 1.56 1.47 1.91 2.05 2.22 2.57 ELECTRIC AND ELECTRONIC EQUIPMENT 1.28 1.51 1.68 1.82 1.84 1.21 1.26 1.66 1.68 1.86 2.17 TRANSPORTATION EQUIPMENT 1.44 1.61 1.83 2.01 2.12 1.42 1.55 1.82 1.90 2.15 2.40 TOYS AND SPORTING GOODS 1.44 1.44 1.44 1.68 1.78 1.01 1.14 1.53 1.53 1.65 2.10 OTHER MANUFACTURING 1.12 1.35 1.55 1.72 1.71 1.11 1.20 1.49 1.57 1.81 2.10 --------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 20 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES COMPENSATION MEASURED IN U.S. DOLLARS -------------------------------------------------------------------------------- INDUSTRY 2001 2002 2003 2004 -------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 2.40 2.56 2.37 2.32 FOOD AND RELATED PRODUCTS 2.05 2.87 2.32 2.34 APPAREL AND OTHER TEXTILE PRODUCTS 1.74 1.92 1.85 1.83 FOOTWEAR AND LEATHER PRODUCTS 2.82 2.93 3.04 3.46 FURNITURE AND FIXTURES 2.60 2.62 2.49 2.49 CHEMICALS AND CHEMICAL PRODUCTS 2.35 2.50 2.12 2.23 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC 3.06 2.87 3.02 3.04 ELECTRIC AND ELECTRONIC EQUIPMENT 2.58 2.67 2.44 2.35 TRANSPORTATION EQUIPMENT 2.83 3.01 2.69 2.58 TOYS AND SPORTING GOODS 2.86 2.97 2.07 2.24 OTHER MANUFACTURING 2.40 2.56 2.35 2.37 -------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 21 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES COMPENSATION MEASURED IN PESOS --------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 --------------------------------------------------------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 28 32 41 69 109 176 276 490 1114 2238 2836 FOOD AND RELATED PRODUCTS .. 33 41 70 115 169 218 422 895 1702 2110 APPAREL AND OTHER TEXTILE PRODUCTS .. 30 36 62 95 143 236 404 913 1720 2188 FOOTWEAR AND LEATHER PRODUCTS .. 37 50 80 113 181 281 501 1073 2013 2393 FURNITURE AND FIXTURES .. 37 47 68 102 175 280 513 1176 2286 2813 CHEMICALS AND CHEMICAL PRODUCTS .. .. .. .. .. 183 340 502 1015 2226 2505 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC .. 30 44 69 126 244 341 625 1388 2623 3704 ELECTRIC AND ELECTRONIC EQUIPMENT .. 32 40 69 108 176 274 491 1147 2320 2935 TRANSPORTATION EQUIPMENT .. 35 44 82 123 199 304 541 1183 2485 3114 TOYS AND SPORTING GOODS .. 35 43 73 102 184 277 459 1131 2535 3154 OTHER MANUFACTURING .. 34 46 69 111 177 265 451 1018 1925 2442 --------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 22 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES COMPENSATION MEASURED IN PESOS --------------------------------------------------------------------------------------------------------------------------------- INDUSTRY 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 --------------------------------------------------------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 3539 4388 5047 5.53 6.14 7.50 9.26 12.14 14.40 16.84 19.28 FOOD AND RELATED PRODUCTS 2715 3562 3993 4.42 5.07 6.25 7.02 8.75 10.68 13.16 15.09 APPAREL AND OTHER TEXTILE PRODUCTS 2850 3408 3893 4.14 4.56 5.42 6.47 8.52 10.16 12.10 13.92 FOOTWEAR AND LEATHER PRODUCTS 3094 3775 4671 5.32 5.79 6.96 8.85 11.48 13.08 16.52 17.96 FURNITURE AND FIXTURES 3507 4175 4869 5.45 6.21 7.17 8.79 12.77 15.57 18.36 20.94 CHEMICALS AND CHEMICAL PRODUCTS 3334 3980 4501 4.94 5.53 6.87 9.12 11.98 14.18 16.60 19.78 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC 4481 5983 6718 7.49 8.97 10.03 11.17 15.11 18.77 21.22 24.34 ELECTRIC AND ELECTRONIC EQUIPMENT 3611 4543 5190 5.66 6.21 7.76 9.57 13.11 15.38 17.76 20.57 TRANSPORTATION EQUIPMENT 4056 4863 5653 6.25 7.15 9.13 11.75 14.43 17.35 20.52 22.67 TOYS AND SPORTING GOODS 4044 4354 4448 5.24 5.99 6.50 8.69 12.14 14.05 15.80 19.91 OTHER MANUFACTURING 3147 4080 4792 5.35 5.76 7.14 9.10 11.83 14.41 17.27 19.90 --------------------------------------------------------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES PAGE 23 MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES COMPENSATION MEASURED IN PESOS -------------------------------------------------------------------------------- INDUSTRY 2001 2002 2003 2004 -------------------------------------------------------------------------------- MAQUILADORA MANUFACTURING 22.42 24.70 25.54 26.23 FOOD AND RELATED PRODUCTS 19.15 27.75 25.09 26.38 APPAREL AND OTHER TEXTILE PRODUCTS 16.27 18.59 20.01 20.68 FOOTWEAR AND LEATHER PRODUCTS 26.35 28.34 32.76 39.03 FURNITURE AND FIXTURES 24.30 25.34 26.91 28.16 CHEMICALS AND CHEMICAL PRODUCTS 21.94 24.16 22.93 25.21 MACHINERY AND EQUIPMENT EXCLUDING ELECTRIC 28.58 27.73 32.56 34.34 ELECTRIC AND ELECTRONIC EQUIPMENT 24.10 25.77 26.34 26.52 TRANSPORTATION EQUIPMENT 26.44 29.10 29.06 29.16 TOYS AND SPORTING GOODS 26.73 28.75 22.37 25.27 OTHER MANUFACTURING 22.37 24.76 25.39 26.77 -------------------------------------------------------------------------------- See notes (1) (2) at end of tables. SOURCE: U.S. BUREAU OF LABOR STATISTICS, MAY 19, 2006 PAGE 24 HOURLY COMPENSATION COSTS FOR PRODUCTION WORKERS IN MANUFACTURING INDUSTRIES MEXICO, 1979-2004 II MAQUILADORA (IN-BOND) EXPORT INDUSTRIES (1) Maquiladora manufacturing data are reported according to Mexico's unique industry classification for maquiladora establishments. (2) Mexico's currency was converted in January 1993 to 1 new peso = 1,000 old pesos.