Mexico's Calderon: Why you may not see his name up in lights!

President Filipe Calderon dissolved the state-owned Central Light and Power Company (LFC) late Saturday night (10/10/2009) and fired more than 41,000 union workers. This effectively shut down the Mexican Electrical Workers Union (SME), one of Mexico's most combative and independent unions.

The administration promised severance pay, with substantial increases for workers who accept a deal within a month. It plans to re-contract a certain number of workers; however, they will be working without union representation.

The Central Light and Power Company provides electricity to more than 25 million customers in Mexico City and surrounding states. Shortly before midnight, Federal Police and army troops occupied 91 of its 103 installations.

Calderon plans to merge LFC with the state-owned Federal Electrical Commission (CFE), the agency that provides power to the rest of Mexico. Such a merger might lead the way toward eventual privatization of the electrical sector. However, the energy sector is constitutionally a state monopoly. Thus, the SME plans to challenge Calderon's actions in court.

This fight might be bigger than Calderon. He has a long history of anti-union activity, most recently directed against mineworkers, but the SME is a tough opponent. The union has fought hard against privatization of the energy sector in recent years and has a 95 year history of solidarity building. Many organized workers could respond positively if there's a call for a general strike.

The Calderon administration, aided by networks Televisa and TV Azteca, mounted a campaign in recent months against the SME, claiming LFC was spending nearly twice as much as it was taking in from electricity bills, forcing the federal government to make up the difference. The union presented conflicting data to the Interior Secretary earlier in the week, but apparently the Calderon administration ignored the union's calculations.

Calderon won't be seeing his name up in lights anytime soon, if the SME has anything to say about it.

Source: Mexico Solidarity Network: "Mexico News and Analysis," October 5-11, 2009