Mexican unions agree to salary cuts
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Mexican auto unions are taking a cue from U.S. labor leaders by offering two-tier hiring schemes and salary cuts that bring already low wages down to near-Chinese levels.
Wage concessions were apparently key to persuading Ford Motor Co. to direct many of the 4,500 new jobs involved in building Fiestas to the Ford plant in Cuautitlan, on the outskirts of Mexico City.
Union leaders at the plant said they had agreed to cut wages for new hires to about half of the current wage of $4.50 per hour.
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