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RCED-94-78R 1 (1993-11-12)

handle is hein.gao/gaobacklk0001 and id is 1 raw text is: UntdStates GAO General Accounting Office Washington, D.C. 20548 Resources, Community, and Economic Development Division B-255696 November 12, 1993 The Honorable Ernest F. Hollings Chairman, Committee on Commerce, Science, and Transportation United States Senate Dear Mr. Chairman: This letter responds to your August 20, 1993, request for information on the difference in wages received by U.S. and Mexican commercial vehicle operators. In your letter, you noted that this information could be helpful as the Congress considers the North American Free Trade Agreement (NAFTA). On October 22, 1993, we briefed your staff on the results of our data collection efforts. In summary, official data on Mexican driver wages are very scarce. Mexico is only beginning to gather information on intercity motor vehicle operations that is at all comparable to the data collected by the Interstate Commerce Commission (ICC). Moreover, drawing comparisons between U.S. and Mexican driver wages is further complicated by the fact that truck drivers are compensated in several different ways. Some are paid an hourly wage, some are salaried, some are paid by the distance traveled, others are paid a percentage of the charges for hauling the shipment, and still others receive a flat rate per haul. Sometimes drivers are paid by a combination of these methods. Arriving at a common basis for comparison, therefore, is difficult. In addition, wages in Mexico vary geographically. Basically, there are three wage zones in Mexico, with wages being highest in the north near the U.S. border. Given the lack of hard data from reliable sources, we sought to develop a consensus view as to the likely order of magnitude of the wage differential by relying on a variety of data sources, including discussions with knowledgeable individuals on both sides of the border. GAOIRCED-94-78R, Mexican Trucking Wages

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