Working conditions in the Mexican automobile industry changed dramatically during the period of union democratization (1968-77). In response to demands made by combative, democratic unions, managers implemented processes to resolve grievances. Democratic unions also won some real control over the production process and increased the level of wages and benefits. With the onset of industrial restructuring and regional integration after 1982, however, many of the gains made previously by workers were placed in

jeopardy. Companies introduced flexible work rules and lower wages in the export sector, and they sought to bring industrial relations in the ISI plants in line with the standard achieved in the export plants. To what extent were workers in the older plants able to protect wages and strong work rules? Did labor relations in the export plants remain flexible?