Mexico: Workers resist power sell-off

October 23, 2009
Issue 

Mexican President Felipe Calderon has tried to buyoff electricity workers facing redundancy as part of his campaign to privatise the state-owned power company Luz y Fuerza, by offering free English lessons on top of redundancy payments.

However, fewer than 100 people showed up to collect redundancy payments on October 15. More than 300,000 people instead marched that day against Calderon's plans in the Zocalo, Mexico City's main square. Speakers accused the government of acting illegally and threatened civil war.

On October 10, the Calderon government had soldiers and police occupy the offices of Luz y Fuerza. Calderon announced the company was being liquidated and the 65,000-strong workforce offered redundancy payouts.

Under pressure from the demonstrators, the government agreed to enter into talks with the power workers union, SME.

However, the government has refused to backtrack on any of its actions. It has maintained that Luz y Fuerza was inefficient and too-expensive and Mexico, a country in economic crisis, could not afford it.
Getting nowhere, the SME pulled out of talks on October 19.

Worried, the government upped its redundancy offer to include free English lessons, vocational training and money towards setting up small businesses for ex-workers.
Martin Flores, head of the SME, said the union would return to the negotiating table only when the government made serious offers, not "invitations to liquidate ourselves" and maths courses.

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