Labor Environment

The Mexican labor environmentfluctuates dramatically depending on current issues in labor and political stability.Political change is the most potent powerful force on organized labor, asunrestvaries depending on which political faction is in power -- particularly important is thelocal political leadership.The labor environment in Mexico is at best, a direct reflection of local, regional and national politics. The level of stability varies depending on the region of the country, with the southern region being the most radical and politically active in terms ofstrikesand worker discontent. Typicallyorganized labor inthe north is relativelyindependent of large unions. Workers belong to small, independent unions that are weak and susceptible to state pressure. Organized labor inthe center of the country is the most cooperativewith the state and private sector industries. Labor activismdirected at retailerscan be disruptive, but it is notcommon andmost labor unrest is focused on the political situation -- the party in power, the labor policies of the government, etc.-- rather than directed squarely at employers, wages and working conditions.Some Mexican labor unions have largemembership-- measuring into the hundreds of thousands --and have the potential to create disruptions in both the public and private sector with organized demonstrations and strikes. Although striking is notfrequentand it seldom disruptstransportation andmanufacturing, recentnational political instability at the national level has resulted in an uptick of labor union activity and political demonstrationsthat havein turn affect the private sector industries.

Thelabor environment in Mexico varies depending on the region of the country. The industrialized northwhich is home to Mexico’s Maquiladoraexport-orientedindustries, are traditionally cooperative withbusiness. There are rising tensions due to public health and workplace safety issues. However, thusfarthe governments and business have been able to prevent major labor organization by firing leaders, union organizers and sometimes more violent methods. U.S. groupssuch asthe Silicon Valley Toxics Coalition and Amnesty International havetried to help unions organizethese workers andhavetried to bring attention to what they consider business' and government's inattention to poor wages and working conditionsin this region.

The centerof the country near Nuevo Leon, where most industriesare concentrated ishome tothe oldest unions in Mexicoincludingthe CTM. The CTM stopped being part of the government apparatus since the late 80’sand though it gained a measure of independence with this break, it lostits bargaining powerwhen dealing withindustries andlost powerovermany affiliate unions.Thelarge traditional unionsconnected to the CTMare less violent in their activities and generally look for consensus when negotiating with industry.

The south of Mexico, particularly the region from Geurrero to Chiapas,is the most radical part of the country.In this part of the countryleftist and indigenous movements are very active in their social demands and go to every extent to achieve their goals including blockades of roads, disruptive strikes and sometimes showdowns with security forces.

During the 1980’s, the Mexican government moved manyof itsstate run industries into the private sector. Today, many private sector industries include participation by foreign companies. Private companies in general operate independently of the political system because they are not concerned with re-elections. Conversely, state run enterprises typically face more political backlash from unions for their failure to appease workers and often work to come to an agreement for fear it may affect their interests politically. As a result,aftermoving from the state-ownedto the private sector,several unions lostthebargaining power they had once held with the state.Mexican trade unions are legally permitted to organize, collectively bargain and to strike,but strikes are infrequent.Most negotiations between management and employeesoccur through union representation withouteventhe threat or event of a strike.Foreign enterprises are somewhat free to act withoutmanyif any repercussions from the labor unions because they do not have political positions to protect.

Mexican Unions are divided into three categories: cooperationist, activist and independent. Cooperationist Unionssuch as the CTM and CROCwere originallydirectlytied to the Revolutionary Institutional Party (PRI). These unionsremain quite strong andare capable of mobilizing large masses ofstate employees andworkers from state industriesand the petroleumindustry. These unionshave hadsignificantly less power since the presidency of Carlos Salinas de Gortari in the 1980’s.Salinasforcedmost unionstooperate more democratically,he also reduced the ties between the unions and the state itself. The privatization ofstate industries weakened these unions—as they wereforced to bargain witha number of companies whichwere less susceptible to Mexican political pressure. Unionsstillhave the power to mobilize millions of workers in vital industries but in general they choose to engage incooperativenegotiations with foreign private sector players.

While the CTM related cooperationist unionshave the largest membershipthe most visible unionsare thosethatfall under the Authentic Labor Front (FAT) umbrella. These unions are generally opposed to the widespread privatization of industry and the general reform of labor laws that give Mexico a free market economic system. The FATis a strong supporter of Party of Democratic Revolution (PRD) and is directly opposed to the incoming president of the PAN Felipe Calderon. The FAT supported the populist left-wing candidacy of Andres Manuel Lopez Obrador,in the most recent 2006 Mexican presidential election.The FAT in particular has aradical agenda and does not hesitate to disrupt business operations to get the way of their political goals. The FAT is comprised of utility, state and production workers. Obrador called forboycotts of foreign business andforprotests atforeign ownedstores. Specifically the PRD targeted U.S. based Wal-Mart for its so called ties to the PAN. After the election several PRD blogs organized dates to picket Wal-Mart doors or block the registers with carts full of products that they would dump on the floor.

Independent unions aremost often foundin the northern Maquiladora towns. They lack the organizing power of the largeunions because they are newer andwerecreateina regionnot particularly favorable towards unions. Governments and industries in the Maquiladora sector heavily crack down on incipient unions and try to keep most workers employed through temporary work agencies preventing unions from growing in membership and funds. However, due to this constraints independent unions are becoming increasingly radicalized and anti-business.

NGO’s

International and community based non-governmental organizations (NGOs) are at the forefront of Mexican labor, public health and environmental policy campaigning. International organizations , including Greenpeace and Oxfam campaign on issues such as Corporate Social Responsibility (CSR), human rights and the environment. The groups do not have, nor do they need, a particularly strong grassroots presence since they easily coordinate with grassroots movements and similar local organizations.

Although Greenpeace Mexico is active on a variety of campaigns, environmental issues in generalare not very developed in Mexico because most NGO and local activist efforts concentrate on working conditions, labor standards, poverty andmore basic political issuespolitical disconnect. Wealthyinternational organizationssuch as GreenpeaceInternational, invest significant sums inenvironmentalcampaigns in Mexicoand through these investments winexposureand political support that grassroots organizations could not.

With funding from the Greenpeace International secretariat,Greenpeace Mexico has recentlyinitiatedon ananti-toxics campaign,directed at winning Mexican adherence to international chemicals conventions. Greenpeace's highest priorityis toto make the Registry of Emission and Transfer of Contaminants (Registro de Emisiones y Transferencia de Contaminantes RETC) mandatory instead of voluntary.RETC is a voluntary registry for hazardous waste materials. RETC requires companies to report the quantity and product they are disposing of.

Greenpeace Mexicois alsopromoting the Stockholm Agreement on Persistent Organic Contaminantsand is pushing corporations to take other voluntary steps, such as offering free battery take-back and recycling. They also pressure companies to change materials in electronics and change how e-waste is recycled. E-waste is an informal name for old electronics products that have reached their user life. Greenpeace activists worldwide target companies tochange the composition of electronics that make e-waste and lessharmful to the environment.On the E-waste front in Mexico, Greenpeace pressures companies to agree to some voluntaryreductions in the use of toxics in electronics products and to take back e-waste products.

The most important NGO’s in Mexico are social protest groups. Many leftist organizations are highly organized and have the ability to gather different groups around a particular issue. For example, in July 2006, the APPO in Oaxaca formed around localized militant groups who then assisted the APPO in a massive teachers strike. The Teachers Union of Oaxaca, students and other groups pressed for the resignation of Oaxaca governor Ulises Ruiz. The PDR was also successful in staging popular mobilization after the defeat of its presidential candidate Andres Manuel Lopez Obrador. Using internet blogs and community organizations the PRD was able to orchestrate many actions that interrupted business and circulation in Mexico City.In July 2006, the APPO in Oaxaca formed around localized militant groups who then assisted the APPO in a massive teachers strike. The Teachers Union of Oaxaca,students and other groups pressed for the resignation of Oaxaca governor Ulises Ruiz. The PDR was also successful in staging popular mobilization after the defeat of its presidential candidate Andres Manuel Lopez Obrador. Using internet blogs and community organizations the PRD was able to orchestrate many actions that interrupted business and circulation in Mexico City.

Local and community groups in small towns are also very easy to mobilize around polarizing issues in a way that is not seen in the United States. It is not uncommon for an NGO to stop a business from beingstartedif the activist groupcan convince the community that the business it is bad for the community. This is mostoftenseen in thenorth andinrural areas. An example of this is the obstruction to the construction of a safe hazardous waste disposalsitein Nuevo Leon in the late 90’s, sparked by leftist groups and enforced by the community. Following a long and active campaign by leftist groups the sitewas not allowed to be used.