Abstract

Low labor costs are a key attraction for companies seeking to establish or expand operations in Mexico. However, the realization of sustainable low costs while maintaining high quality requires managerial approaches adapted to the Mexican business environment. Companies doing business in Mexico need to understand the significant culturally based differences between U.S. and Mexican approaches to employee relations. This article examines employee relations in Mexico from the perspective of U.S. managers, identifies pivotal features of Mexican employee relations, and offers pragmatic guidelines for managing employee relations south of the border.