CALEXICO, California -- The workers at one of the oldest maquiladoras (assembly plants) in Mexicali, Mexico, near the border with California, were told Wednesday that this will be their last week at their jobs.
The situation of Certron Audio, which started operating in Mexicali in 1966, is a reflection of the serious effects of the U.S. economic slowdown on Mexican maquiladora industries.
According to some estimates, 8,000 jobs have been lost in the maquiladoras along the border with California.
Rita Vargas, the Mexican consul in Calexico, California, said that according to industry estimates, another 6,000 maquiladora jobs could be lost before the year is over. Vargas said that at least 25 assembly plants closed down in the area of Mexicali and the Mexican city of Tijuana this year.
The Certron case has gained notoriety because it was one of the first plants to benefit from a Mexican government program to attract investment to the border area.
Certron, one of the largest Mexican plants in the area, employed around 1,700 workers in the manufacture of cassettes, ink cartridges, key holders, ballpoint pens, and other items. The company's clients included AT&T, Gillette, ITT, and Radio Shack. Certron will continue production at its Los Angeles plant.
Although Certron management refused to answer telephone questions, Fernando Arango, chairman of the Mexicali Maquiladora Association, said that the decision came as no surprise.
He said that although several plants closed this year and others trimmed their operations and payrolls, some were planning to set business in the border area around Mexicali.
Arango's association will determine at the end of the year the extent to which lost jobs and services exceeded the creation of new jobs by companies just starting business, which purchase supplies and services from small local businesses.
Arango said that four maquiladoras had announced they would leave the area or discontinue production, but that not all of them were linked to his association, and that the number of plants closing down could be much greater.
"The impact [of the slowdown] is more rapidly felt at the border because we are closer to and more dependent on the United States," Arango said.
