Mexico's Retail Workers: Low Pay, Tough Conditions

Despite the accelerated growth of Mexico's retail sector, many employees endure meager pay and grueling work conditions, according to El Financiero. A problem further compounded by unfair treatment and hostile work environments, prompting 73% of workers to seek new opportunities. Urgent reforms, such as salary reviews and incentives, are crucial to uplift worker welfare and secure the industry's future, according to El Financiero. .

The survey details that the average monthly salary of an employee in Mexico’s retail sector stands at a mere US$238.70. This figure is 56% below the federal minimum wage for 2024, which was set at US$373. Specifically, employees of Súper Che and Supercito de Chedraui earn a paltry average of US$210, while those at Tiendas Neto manage only slightly better with an average salary of US$297.50. These numbers underscore a glaring disparity between wages and the cost of living for retail workers in Mexico, highlighting the pressing need for reforms to ensure equitable compensation.

Besides contending with low wages, the grievances of these workers extend beyond financial strain. Reports reveal widespread unfair labor practices such as irregular scheduling, lack of benefits, and limited opportunities for career growth. Many employees also endure hostile work environments marked by misogyny and harassment, thereby diminishing morale and hindering productivity. Gender disparities further exacerbate the situation, with women earning 25.7% less than their male counterparts on average. Despite ongoing calls for reform and improvement, dissatisfaction among workers persists.

Amidst these challenges, some companies are setting a positive example. Oxxo leads the pack with an average salary of US$397.5, followed by 7-Eleven, which offers competitive wages and better working conditions.

“[A] positive work climate and health[y] workplace relationships promote productivity and reduce absenteeism. In addition, happy employees experience less stress and are more resilient when faced with difficulties and challenges, both at work and in their personal lives,” says Joseph Zumaeta, Country Manager, Pandapé.

The demand for change among retail workers in Mexico is driven by the significant impact of rising prices and inflation on their livelihoods. Meanwhile, a staggering 73% of these workers are actively seeking better-paying job opportunities, reflecting the urgency of the situation. This urgency is further underscored by Mexico's high food inflation rates, which have surpassed the Organization for Economic Cooperation and Development (OECD) average. In January, Mexico saw one of the highest year-on-year increases in food inflation among OECD member countries, reaching 7.3%.

To address these pressing issues and enhance employee satisfaction, RetailWire recommends that companies conduct regular salary reviews and implement incentive programs. Such measures are essential not only for the well-being of retail workers but also for the long-term sustainability of the industry.