THIS IS A TWIST, MEXICAN GOVERNMENT TAKES OVER UTILITY DUE TO INEFFICIENCY CAUSED BY UNION DEMANDS
This is an interesting story due to the position of the Mexican government. The Mexican Electricians Union, one of the most powerful in the country, represents about 60,000 workers."They have declared war (referering to the government of Mexico) and we are going to respond, exercising our constitutional rights and guarantees, let there be no doubt about that," the union said in a statement Sunday.Union supporters organized a protest march to the interior ministry Sunday to demand an audience with Gomez Mont. Union leaders were not available for comment Sunday morning because all of the directors were participating in the march, a union employee told CNN.The government cited labor rules imposed by the union as a cause of the inefficiency."Practically all of the decisions of Luz y Fuerza del Centro (Luz y Fuerza del Centro is a decentralized public agency, incorporated as a company with its own assets) had to be taken to serve the demands of the union and not in the interests of the consumers," Gomez Mont said. The government dissolved the company because "its operations are no longer beneficial from the point of view of the national economy or the interests of the public," Gomez Mont said at a news conference.
The Federal Electricity Commission, known by its Spanish initials, CFE, will take over operations. Service will be uninterrupted, the government said. The minister also said the union continued to grow its workforce to benefit itself and not the company's operations.
So what is else is new? We will tell you. The government is recognizing the burden to their economy of the socialist unions controlling many of the State run companies. The PRI, Institutional Revolutionary Party Partido Revolucionario Institucional, had their on the controls of government for 70 years. The PRI is a member of the Socialist International. They control PEMEX, the national oil company. Their production has been in decline for several years and there is no mystery behind the decline. The constitution bans private investment in hydrocarbons. Ever since Lázaro Cárdenas expropriated foreign oil companies in 1938, the state oil monopoly has been seen by many politicians, especially from the formerly ruling Institutional Revolutionary Party (PRI) and its offshoots, as the untouchable bone marrow of Mexican sovereignty. To make matters worse, Pemex has been run more in the interests of its workers and their trade unions than of the Mexican people, its notional owners.
The bottom line here is that the UNIONIZATION of key components of a country's workforce will inevitably lead to economic stagnation. We are glad that those in power in Mexico are beginning to realize the road to growth lies in the free enterprise system. Our only concern is, "HOW LONG WILL IT BE BEFORE OUR GOVERNMENT LEARNS THE SAME LESSON" Viva la Mexico.
Read the full story from CNN.
/world http://www.cnn.com/2009/WORLD/americas/10/11/mexico.utility.company.raid/index.html


Comments