Mexican Labor News & Analysis

Lopez Obrador Leads in Presidential Race: Polls

Andrés Manuel López Obrador, former mayor of Mexico City and candidate of the left-of-center Party of the Democratic Revolution (PRD), leads in the race for president with an estimated 36 percent of the vote according to a poll conducted by the daily newspaper Reforma.

Roberto Madrazo of the Institutional Revolutionary Party (PRI), the former governor of the state of Tabasco, is second with 31 per cent, followed by former secretary of energy Felipe Calderón of the governing National Action Party (PAN) who has 27 per cent. Mexico City assembly member Bernardo de la Garza of the Green Environmentalist Party (PVEM) received five per cent, and Patricia Mercado of the Social-Democratic and Peasant Alternative Party (PAS), the only woman candidate, has just one percent.
While López Obrador leads in the polls, his party, the PRD has the least number of legislators and governors in the country. The PRI remains the leading political party in the country with the largest number of elected representatives. The governing PAN comes in second in political power in Mexico.

In addition to the partisan electoral movements, the Zapatista Army of National Liberation (EZLN) is also conducting “the other campaign,” a non-electoral mass mobilization of opposition forces throughout the country. Finally two broad citizens movements—the Citizens Coalition for a Democatic Transition with Justice and Equity and the National Agreement for Unity, a State of Law, Development, Investment and Employment—are also pushing for reforms during the electoral period.

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Fox Government Defeats Social Security Workers—Big Setback For Workers

By Dan La Botz

President Vicente Fox faced down the Mexican Social Security Workers Union (SNTSS), avoiding a threatened strike, and forcing them to accept major revisions in their retirement benefits, an event which is a major setback for labor. The government, employers, and union leaders, as well as academics, all saw the settlement as a serious defeat for unions and a victory for employers that will have far-reaching consequences. The Fox government’s victory over the Social Security workers also represents a defeat for the National Union of Workers (UNT) of which it is the largest affiliate. Ultimately the Social Security workers were defeated because the leaders of the SNTSS and their allies in the UNT feared to take on the government or, some have suggested, feared to unleash a massive working class struggle that might have jeopardized the union officials’ positions.

Background to the Social Security Struggle

The current conflict has its roots in the Mexican government’s turn to neoliberal economic reforms under the Institutional Revolutionary Party beginning in the 1980s. In 1997 President Ernesto Zedillo succeeded in pushing through the Mexican legislature a law to privatize the funding of the Mexican Institute of Social Security (IMSS) retirement system. Then in 2004, under president Vicente Fox, the legislature passed a pension reform that reduced retirement benefits for new workers.

The struggle in 2005 was to force the Mexican Social Security Workers Union (SNTSS) to accept the pension reform in its members’ contract. Both sides understood this would be a major test of strength in one of the country’s most important institutions and with one of its largest unions.

IMSS has 370,000 active workers and 120,000 retirees, making it one of the largest employers in Mexico. It provides health services to almost 50 million Mexicans, including 13 million active workers in the private sector. IMSS operates 1,500 clinics and over 250 hospitals in all 32 states of the Mexican union. On a typical day, IMSS workers have 384,000 office visits, admit 5,000 hospital patients and perform 3,800 surgeries. With a US$12 billion budget for medical services, IMSS suffers from a shortage of personnel and a lack of equipment and medicine. The Fox government’s strategy, and that of the Institutional Revolutionary Party governments of the 1980s and 1990s, has been to starve IMSS of funds in order to discredit public health and drive middle class and wealthy patients to private clinics and hospitals. Today, IMSS has just 0.93 beds per 1,000 members, compared with 2.3 beds 25 years ago.

The Struggle Begins

On September 8, following Mexican legal procedures, the SNTSS presented its demands to the Federal Labor Board (JFCA). The union sought a 10 percent wage increase and an end to a freeze on hiring for more than 20,000 unfilled positions. But above all, the SNTSS leadership said it wanted to prevent any change in IMSS workers’ retirement benefits. The union contract campaign was seen as part of a political struggle to reverse the 2004 pension reform act.

The head of the social security workers union, Roberto Vega Galina, promised that the union would call a national strike of IMSS to win those demands. The Mexican Telephone Workers Union (STRM) leader Francisco Hernández Juárez promised that his union would also strike in support of the SNTSS. Both unions belong to the National Union of Workers (UNT). The Mexican Electrical Workers Union (SME) which leads the Mexican Union Front (FSM) also promised its support in the form of a sympathy strike. Strikes by these three central unions would in all likelihood have led to strikes by other UNT and FSM unions as well. Thus the IMSS contract raised the specter of what might have been the event that triggered Mexico’s first general strike.

Through the summer and into September and October, Mexican social security workers organized protest demonstrations and marches in cities throughout Mexico. The union also put out literature to union officials and members regarding the conduct of a national strike to begin on October 15. The workers demonstrations, news stories and opinion polls indicated deep and broad support for the union and for a strike.

Confronting the union was Santiago Levy, the Director of the IMSS, and a hard-nosed opponent of the union. Levy presented proposals that would have raised the retirement age by several years, cut benefits significantly, and held down wages. Throughout September and October, Levy remained intransigent in the negotiations and became the focus of the union members’ ire.

A Shameful Moment

In October, with Santiago Levy still holding firm for changes in the pension benefits, some workers put up anti-Semitic signs at one IMSS clinic. The signs with swastikas called Levy a “Jewish pig.” The Mexican Social Democratic Party filed charges against the union for the anti-Semitic signs and Benjamín Speckman, president of the Central Committee of the Jewish Community in Mexico, criticized the union members for referring to the religion of the IMSS director.

While anti-Semitism does not represent a significant current of opinion among Mexican unions and workers, it has flared up from time to time in the past. During the garment workers organizing campaign and strikes following the Mexican earthquake in September 1985, some workers made anti-Semitic statements. The anti-Semitic sign displayed during the struggle over the IMSS workers’ contract this October was an isolated event.

Fox Sacrifices Levy

President Vicente Fox decided to sacrifice Santiago Levy, firing him Oct. 3 and replacing him with Fernando Flores Pérez. With the appointment of Flores, the union’s leader Vega Galina began to soften the union’s position, expressing a willingness now to discuss everything on the table, and to make some major changes.

Spokesmen for Mexico’s employer organizations and conservative newspapers expressed their concern that Fox had gotten rid of Levy. José Luis Barraza of the Business Coordination Council (CCE), León Halkin of Concamin, and Alberto Fernández Garza, leader of Cámara de la Industria de Transformación (CAINTRA), all feared that, by dumping Levy, Fox was giving in to the union. The private employers called upon Fox to invoke the requisa, a law that allows the government to use the military to seize government facilities and force workers to go back to work.
Other Voices Offered their Views and other Forces Weighed in.

The Telephone Workers (STRM) and the Mexican Electrical Workers (SME) announced their plans for solidarity strikes. The Zapatista Army of National Liberation (EZLN) sent word of its support from the jungles of Chiapas. The Revolutionary Union of Workers and Peasants (CROC), one of the “official” unions criticized the social security workers union for threatening to strike, and predicted that the announcement of the first IMSS patient who died during a strike, would also mean the death of the social security workers union.

As the October 15 deadline approached, IMSS workers in many parts of Mexico prepared to strike to defend their pension benefits.

The Social Security Workers Sudden Collapse

Then suddenly, late on the night and on into the morning of Oct. 14 it was all over. SNTSS union leader Vega Galina assembled the union delegates and put forward a proposal that passed by a vote of 613 in favor of the IMSS offer and 285 opposed.

The offer accepted by the union represented a complete capitulation to management on the retirement issue. Under the old contract, workers could retire at any age with 28 years of service by men and 27 years of service by women and receive 130 percent of their salary. For new employees under the new contract, there will be a minimum retirement age of 60, with 35 years of service for men and 34 years for women. The pension will no longer be 130 percent, but 100 percent of wages.

The union also gave in on wages, accepting a 4 percent wage increase and a 1.5 percent increase in non-wage benefits.
In exchange for these massive concessions, Flores agreed that IMSS would fill the vacant positions. Had these been ordinary negotiations this might have been a major accomplishment. However, given the political context and high stakes, it was dismissed by commentators as insignificant, and by some with skepticism about whether it was simply an empty promise.

Critics and Dissidents

Alberto Torres and Arturo Salazar, leaders of the Democratic Alliance (Alianza Democrática), an opposition group within the SNTSS, accused Vega Galina and other top leaders of the union of having sold out the membership. The union leadership they said had called a “fast track” meeting to pass the contract, violating members’ democratic rights.

Fernando Amezcua Castillo, secretary of external relations of the Mexican Electrical Workers Union (SME), called the SNTSS contract “a spear point that will be used against the other unions to demand changes in their retirement benefits and the next will be ISSSTE,” referring to the public employees social security system.

Darío Rojas Macías of the Workers University (Universidad Obrera) criticized the agreement for opening the door to a general attack on workers’ pensions.

Rita Marcela Robles Benítez of the Center for Labor Reflection and Action (Centro de Reflexión y Acción Laboral – CEREAL) argued that the Fox government and the IMSS director had ignored the real crisis, namely, employer contributions.

Presidential candidates Andrés Manuel López Obrador of the PRD and Roberto Madrazo Pintado of the PRI, on the other hand, both expressed their satisfaction that the union and the employer had acted responsibly and arrived at a contract. Both said that they would work to support workers and strengthen their pensions. However, both seemed relieved that a strike had been avoided. A national strike by major unions would have created new power relationships that might have affected their election campaigns and hoped for results.

A Victory for Fox and the Employers

The IMSS contract represents a victory for the Fox administration and for employers in several senses. First, they have won a social security reform that will be paid for entirely upon the backs of the workers, with no increased contribution from the employers.

Second, the IMSS contract will be used as a model to be forced upon other unions and workers. Third, Fox—advised throughout by Carlos Abascal, the Secretary of the Interior and the former Secretary of Labor—succeeded in facing down the largest and most important union in the National Union of Workers (UNT), the most important independent labor federation in the country. The UNT has been revealed to be afraid of confrontation with the employers and the state, and that will weaken the unions in fights over the privatization of electric power generation and over the privatization of petroleum. Moreover, the defeat of the UNT will also weaken its political allies in the Party of the Democratic Revolution (PRD). The social security workers’ loss represents a debacle for labor not all of the consequences of which can even be foreseen.

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EZLN Weights in on the Side of the Social Security Workers

By the Clandestine Revolutionary Indigenous Committee-General Command of the Zapatista Army of National Liberation.

The document above was first pubished in English on the website of the Chiapas Independent Media Center at: http://chiapas.mediosindependientes.org/display.php3?article_id=115506 There is also a second communique there “After the Storm Comes the ‘Other’ Storm” also dealing with the Social Security workers which MLNA readers might find of interest.

The Zapatista Army of National Liberation (EZLN), the guerrilla group that led the 1994 Chiapas Uprising and which is now involved in the “other campaign,” a social mobilization parallel to the national elections, also intervened in the Social Security workers struggle. We publish below one of their statements issued during the strike.

[Translated by irlandesa.]

To the Workers of the IMSS:

To the Other Campaign:

To the People of Mexico:

Compañeras and Compañeros:

We are sending you our greetings and respect. We are writing in order to tell you that we are supporting you in your struggle to prevent Vicente Fox’s government from achieving the privatization of public health care and for the defense of your rights and social achievements. We know quite well that there have been many attacks against you and that you are now, as previously, the object of a media campaign to discredit you and to set the Mexican people against you. That is why we want to tell you that we know quite well that the lies they are saying against you conceal the truth about the big business which the federal government, headed by the National Action Party (PAN) has been turned into.

We know that your struggle against management, against the government and against the pro-management unions, is not just to defend your rights as workers, but it is also to defend the union victories of all workers, and it is also for the right of the people to health care.

We know of your decision to not surrender and to not sell out, and that you are willing to go as far as mounting a strike. That is why we want you to know that the men, women, children and old ones of the EZLN will help you in any way we can, and we will be alert to see that no evil is done to you, because strikes are a right of the worker and should be respected.

We are calling on the people of Mexico to not let themselves be deceived by the lies spoken about those workers, because that is just what the powerful do, when someone rebels against injustice, they invent crimes and falsehoods so they will be left by themselves, without the help of the humble people.

We are making a special call to all the compañeros and compañeras of the “Other” campaign, to mobilize in support of these compañeros and compañeras, workers of the IMSS, in the ways and times they establish; to disseminate true information about the IMSS and their workers; and that we carry out joint actions so that these compañeros know they are not alone.

Lastly, we are telling the workers of the Mexican Institute of Social Security that they can count on us, the zapatistas of the EZLN, to be as we, in fact, are: as compañeros and compañeras of struggle.

Democracy
Liberty
Justice

By the Clandestine Revolutionary Indigenous Committee-General Command of the Zapatista Army of National Liberation.
Subcomandante Insurgente Marcos

Mexico, October of 2005

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Teachers Union Dissidents Oppose Reform of ISSSTE

In the wake of the IMSS workers’ defeat, the National Coordinating Committee (la CNTE) of the Mexican Teachers Union (el SNTE) has called upon the members of the Institute of Security and Social Services of State Workers (ISSSTE) to join in a national day of struggle to oppose the so-called “reform” of that institution.

Sergio Espinal, a member of SNTE Local 18 in Michoacan, has called upon public employees to join him in a sit-in at the general offices of ISSTE to be followed by a demonstration in the national legislature against ISSSTE reform. They called upon social movements and students to join them in defending the medical system and pension benefits of public employes.

La CNTE and democratic locals of el SNTE are also involved in a campaign to oppose an educational reform which they say would hurt both students and teachers. They argue that a proposal to reform secondary education would reduce the study of history, the environment, physics and chemistry, and technology, and lead to the lay off of almost 2,000 teachers.

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University Workers Settle for Less in Wake of IMSS Defeat

The Union of Workers of the National Autonomous University of Mexico (STUNAM) decided not to strike, but rather to accept a wage increase of 3.95 percent in their new contract. STUNAM’s 25,000 workers voted 59.53 percent to 40.47 percent to accept the contract.

At the same time, workers at the Bachelors College (Colegio de Bachilleres or Colbach), a national educational institution with 36 local unions, decided to put off a planned strike until Nov. 15. While 28 locals voted to put off the strike, six voted against, and two could not agree on a position.

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Mexican Mine Workers Strike over Unpaid Profit-sharing

Members of Local 207 of the Mexican Mine Workers Union (SMMRM) began an indefinite work stoppage at facilities in Nacozari, Sonora, owned by Grupo México, one of the country’s largest and most profitable companies. Many of Grupo México’s properties once belonged to ASARCO, American Smelting and Refining Company.

The strike has been called because the company has failed to pay 2003 profit-sharing to 1,000 unionized workers and another 1,000 casual laborers and confidential employees. Napoleón Gómez Urrutia, head of the union, has asked the Secretary of Finance and the Secretary of Labor to intervene in the local situation.
The union fears the company is fooling with the books in order to avoid paying a fair share to the workers.

“The Mexican government should not back up companies like Grupo México when they violate workers’ rights, harm the well-being of families, and break the national labor law,” said Juan Linares Montufar, president of the General Council of Vigilance and Justice of the union.

Grupo México’s profitability is not in question. The company’s Annual Report for 2003 reads: “Grupo México’s 2003 consolidated results showed significant increases over the figures reported in 2002, and placed it in the top five list of Copper, Zinc and Silver producers in the mining world. Said results are owed to higher metal prices, the greater production volumes Minera México achieved in the last half of the year, the beginning of a plan to remodel our mining operations and the financial restructure that was satisfactorily concluded last April, as well as increased production in the Peruvian mines. As a result, these measures reduced our sales cost by 12.3% compared to 2002, equal to $232.5 million USD. Grupo México’s consolidated operational profit on December 31, 2003 amounted to $362.8 million USD, 280% above the amount registered in the same period in 2002.” (Annual Report 2003 page 38.)

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Cane Workers Carry out Demonstrations, Negotiations

Mexican sugar cane workers belonging to the National Peasant Confederation (CNC) and the National Confederation of Rural Property Owners (CNPR) mobilized their members in various parts of Mexico in October as they met to negotiate with the Secretary of the Interior and the Secretary of Agriculture.

The workers oppose the creation of production and quality committees in 23 sugar refineries. Workers are asking to deal with the employers without the committees mandated by a new cane law.

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Lajat Bosses Make Late Night Visits to Workers Homes

From the Coalition for Justice in the Maquiladoras (CJM)

Last week several managers from Lajat began visiting workers’ homes at night. The group of five included the HR manager, Ignacio Salcido, and the new plant manager, Torres Pereyra, who had attacked a woman worker named Eduviges. They carried a briefcase full of money to pay off workers who agreed to quit but also threatened them. At Eduviges’ house, Salcido told her, “The company doesn’t want you anymore, so for the safety of your children it’s better for you to accept severance pay.”

She refused and demanded that they bring back work to the plant and pay the workers their full salary.

When they got to the house of a worker named Laura, they offered her 35,000 pesos (about $3500) as severance. Laura refused, telling them, “My dignity is not for sale. We are fighting for our work and better conditions. I dont want charity.”

The visits and the intimidation continue, but no one has resigned.

Salcido is also offering security guards 3000 pesos for each worker they can convince to quit. Guards told workers arriving at the plant, “Salcido is waiting for you in the office with your severance. You’d better take it because Lajat is going to close the plant and you will have nothing.”

None of the workers accepted. They all told the guards that they want work returned to the plant, and they want Lajat to respect their right to organize their own union.

Laura and Eduviges filed charges with the police for intimidation and Salcido was ordered to appear in court last Friday, October 14th. Eduviges had previously filed assault charges against Pereyra, and he too was summoned.

Both appeared on the 14th, and in front of the chief of police, Laura confronted them explaining that she’s a single mother, that she must leave for work at 6:00 a.m. while it’s still dark. She has to leave her daughters alone, and because of the managers’ midnight visit, she’s now afraid something could happen to them. She said she wanted the authorities to know this in case anything happens to the children.

Salcido admitted the visit but said it wasn’t that late. Both men denied everything else. Workers argued that the Labor Board should resolve the issue and not permit house visits. The chief told Salcido and Pereyra that he was ordering then to cease the house visits. They would be arrested if the visits continue.

Lajat’s Game

It’s a familiar game that Lajat is playing. Its called union-busting by any means necessary. Lajat thinks its got all the high cards up its sleeve: money, influence, government, and corrupt unions, and when all these are insufficient to stop the workers, their endgame is to invent a plant closing and mass firing making a union election irrelevant.

Despite this, the Lajat workers remain strong and united. They have a few cards too. They are in communication with workers at other Lajat plants.They have taken their struggle into the streets of Gomez Palacio to inform the community of their plight. They have been protesting in political events. They are getting support across North America. Their economic situation is, however, critical with medical benefits eliminated and wages cut in half to $35 a week. They’re trying to earn extra money by selling food on the street.

The Games the Brands Play

CJM’s Action Committee in the United States and Canada has been trying to work with the customers of Lajat since last spring. Each one has its own game. Here’s a run-down:

The Game of Passive-Aggressive Levis Strauss:

Levis has been willing to acknowledge its responsibility to enforce its Global Sourcing and Operating Guidelines and sent an inspector in April who determined that Lajat was violating their contract by producing in the Gómez Palacio plant which had not been certified. They were helpful in forcing Lajat to reinstate fired workers with back pay. Since then, they say they have told Lajat to respect labor law and not interfere in the workers’ right to form an independent union. They continue to produce in Lajat’s Torreon plant and alternately acknowledge further responsibility and refuse it claiming that since they have no production in Gómez, they can’t do anything. We think this isn’t good enough. Lajat is shifting production around to bust unions, and Levis, as a Lajat customer, must insist that its code applies to this behavior no matter where jeans are produced within the company. We hope to meet with Levis again soon and bring a worker. Levis claims they have been working closely with us. We want some results and we want open, transparent dealings where all the players are at the table.

The Shell Game Aeropostale:

When we first contacted Aeropostale they denied any relationship with Lajat but acknowledged that they had a code of conduct for suppliers which covered freedom of association. After we sent them labels and production sheets from the Gómez plant and targeted them in an alert, their attorney threatened to sue us for libel. Finally, we were contacted by their code enforcement subcontractor, the Texas-based Intertex Group, which had discovered that an Aeropostale contractor, Siete Leguas, had subcontracted work to Lajat without telling them. They promised to take prompt and decisive action to insure that our standards are not compromised by the actions of third parties. . . Unfortunately, while we share your concern for the injustices . . . we can only demonstrate our displeasure financially. . . only market forces will change this specific situation. So at this point, Aeropostale appears to be willing only to instruct Siete Leguas to cancel production at Lajat. This will solve nothing but neatly shifts responsibility for improving standards away from their company. We want a meeting with Intertex, Aeropostale, and Siete Leguas.

The Game of Deception Mudd:

Last Spring Mudd, although it appears to have no Code of Conduct at all, followed Levis lead and helped pressure Lajat, even writing an open letter countering Lajat’s lies that if the workers voted for an independent union, they’d cancel their contract. Since then, their compliance person is referring all correspondence to company President Conrad Lung. He claims in letters that Mudd has not produced at Lajat since April when it did cancel its contract. This is belied by workers’ testimony that Mudd products are still being worked and production sheets and labels workers provided from August. If Mudd continues its denial, we will bring a worker to New York and we will demonstrate at Mudd headquarters. If necessary we will also demonstrate at stores which sell Mudd Jeans until they take responsibility. Cutting and running is not an option.

Pressure on the Mexican Government

CJM members and allies have begun visiting Mexican consulates in the US. In Kansas City we got an appointment and asked the Vice-Consul to communicate our concerns to both federal and state governments. It’s clear that Mexican labor law is being violated in numerous ways, from the refusal to call an election, to the intimidation of workers, to the closing of the Gomez plant. We plan visits in other cities: Chicago, Washington, Los Angeles, San Francisco, and San Antonio.

Focus on Lajat Worker, Lalo Gónzales

Lalo Gonzáles an 11 year maintenance worker has a 9-year-old daughter named Normita who was born with congenital defects and needs a heart and lung transplant. Since Lajat shut down production at the Gómez plant, Lalos wages are reduced to $35 per week. It’s really less because Lajat continues to deduct 25% for his INFONAVIT house mortgage (even though Lajat has stopped passing this money on to Infonavit). With taxes and union dues he only takes home 200 pesos a week ($20). Normita needs oxygen all the time. He can’t afford it on his reduced income. Lalo is desperate and holds Lajat responsible if his daughter dies.

Lajat Workers’ Demands:

Lajat must return production to the Gómez Palacio plant and reinstate all workers at full pay and benefits.

Lajat must stop interfering with the workers’ right to a union representation election.

Lajat must stop intimidating and harassing workers.

How you can help them:

Call or write to Levis, Mudd Jeans, and Aeropostale
Write President Fox and copy the Secretary of Labor and Social Welfare, the Governor of Durango -- Alfredo Hernández Deraz, and the President of the Conciliation and Arbitration Board in Durango.

Help host and/or support The CJM/Lajat Workers Tour to spread the word and raise funds in the US and Canada October 25 to November 15th [if interested contact cjm_mojeda@igc.org] 210-732-8957

Visit your Mexican Consulate and demand that the government follow its own laws and protect the safety of the workers and their families.

Volunteer to help us organize leafleting at stores where Levis, Mudd Jeans and Aeropostale are sold. Call 210-732-8957 (CJM) or email jancel@igc.org, cjm_mojeda@igc.org.

Donate money for the Lajat workers by sending a check made out to The Coalition for Justice in the Maquiladoras. In the memo area put Lajat Workers and mail it to: CJM, 4207 Willow Brook San Antonio, TX 78228

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Social Statistics

Wages

The National Minimum Wage Commission announced that workers’ wages fell by 0.9 percent between January and August. The Mexican Institute of Social Security showed an averge wage of its participants of 180 pesos per day or about $18 per day. IMSS members work in private industry.

Minimum Wages

The period of the administration of president Vicente Fox has registered the lowest increases in the minimum wage in the history of the country, according to the Center for Labor Investigation and Union Consulting (CILAS). The annual rate of increse in the minimum wage under Fox was 5.8 percent.

Informal Economy

President Fox has delcared that his government will charge taxes on the incomes of the 11 million people representing some 27 percent of the workforce who labor in the informal economy.

Unemployment

In September, 3.7 percent of all Mexican workers were unemployed, as opposed to 4.0 percent in the same month in 2004, according to the Mexican Institute of Social Security.

Economic Growth

In the first nine months of 2005, Mexico’s economy grew by only 3 percent, compared to 4.2 percent for the same period in the previous year.

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