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FM AMEMBASSY MEXICO
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RUEHC/DEPT OF LABOR WASHDC
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEHXI/LABOR COLLECTIVE
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UNCLAS SECTION 01 OF 03 MEXICO 005428 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR DRL/AWH AND ILCSR, WHA/MEX, USDOL FOR ILAB 
 
E.O. 12958: N/A 
TAGS: ELAB ECON PHUM PGOV PINR MX
SUBJECT:  MEXICO,S RULING PARTY PROPOSES FREEDOM OF 
INFORMATION TYPE REQUIREMENTS FOR UNIONS 
 
¶1.  SUMMARY: Mexico,s Federal Labor Law is amazingly 
detailed with regards to the obligations that employers have 
towards employees but surprisingly silent when it comes to 
the obligations the unions have towards their members. 
Mexican unions are under no obligation to their membership on 
such things as who holds leadership positions or how much 
union officials earn, how much workers can be charged for 
union dues, what is done with union funds, what property the 
unions own, or even the details of their collective 
bargaining contracts.  In fact, Mexicans unions have very few 
legal obligations to provide their members with any 
information at all on the internal administration of their 
organization.  Because of the obvious potential for abuse the 
Senatorial faction of Mexico,s ruling National Action Party 
(PAN) has proposed a change in the country,s labor laws that 
will impose freedom of information type requirements on 
organized labor unions.  If passed, this legislation would 
usher in a significant and positive change in the way labor 
unions operate in Mexico.  Alas, the chances of this proposal 
becoming law are not good.  Despite declining membership and 
a consequent loss of political power, Mexico,s labor unions 
still wield considerable clout when it comes to vetoing 
legislation they do not want.  END SUMMARY. 
 
 
UNION AUTONOMY 
-------------- 
 
¶2.  Regardless of what labor organization they may belong to, 
one of the most frequently discussed aspects of Mexico,s 
Federal Labor Law among senior labor leaders is the statute 
governing union autonomy.  Labor leaders consider this 
autonomy to be the basis for independent unions.  The 
overwhelming majority of Mexican labor experts and a 
significant portion of its political class, at least 
publicly, can be counted on to support the idea of union 
autonomy as one of the bedrock principles underpinning the 
growth of a more democratic Mexico.  Union autonomy is viewed 
as one of the ways in which the broader human rights of 
freedom of speech and freedom of association are guaranteed. 
 
¶3.  In theory, union autonomy prevents any attempt by the 
government to take over an organization intended to promote 
the economic well being of average Mexicans and using it for 
political gain.  In practice, union autonomy in Mexico seldom 
appears to be about protecting human rights.  More than 
anything else, &union autonomy8 in Mexico has come to 
symbolize one of the things that most clearly demonstrates 
the need for urgent labor reform; namely a corrupt union 
leadership completely free of any type of accountability. 
 
 
UNIONS OPERATE ON A NEED TO KNOW BASIS 
-------------------------------------- 
 
¶4.  Mexico,s Federal Labor Law derived from the country,s 
constitution, specifically Article 123, which establishes a 
set of principals and rules applicable to all laws regulating 
labor relations.  Over time these rules have developed into 
an intricately detailed set of regulations covering the 
obligations employers have towards employees.  However, these 
regulations are all but silent when it comes to the 
obligations unions have towards their members.  As a result 
the reality of union autonomy in Mexico has changed from a 
tool in the defense of basic human rights to a de facto 
blanket justification for labor leaders to operate on a need 
to know basis. 
 
¶5.  Mexican Federal Labor Law does not obligate unions to 
divulge any information whatsoever about their internal 
administration.  Consequently, labor leaders closely guard 
such information claiming that the details of internal union 
administration are freely available to their organizations, 
membership since they are they only ones who really need to 
know.  In reality, since the law does not require labor 
leaders to release information about the internal workings of 
their unions, most of them do not do so. 
 
¶6.  The average Mexican union member receives little or no 
information on the organization,s internal administration. 
They have no right to such basic information as the names of 
the persons in union leadership positions, how much union 
officials earn, how much workers can be charged for union 
dues, what is done with union funds, what property the unions 
 
MEXICO 00005428  002 OF 003 
 
 
own, or even the details of their collective bargaining 
contracts.  In a disturbing number of cases, such as when the 
&union8 exists only on paper, the workers are not even told 
that they are members of a union.  In such instances, which 
by some estimates occur in over fifty percent of all 
collective bargaining contracts, workers are denied the right 
(to?) read the statutes which govern internal union 
administration yet they are nevertheless required to pay 
bi-weekly union dues. 
 
 
PROPOSED LAW WOULD REQUIRE OPENNESS 
----------------------------------- 
 
¶7.  A shockingly large number of abuses have occurred in 
Mexico,s organized labor movement under the cover of union 
autonomy.  The most spectacular of these in recent times is 
the allegation that the leader of what had been Mexico,s 
sole Mine Workers, Union, reportedly misappropriated USD 55 
million in union pension funds. 
As a result of this and other abuses of union autonomy, the 
Senatorial faction of the ruling National Action Party (PAN) 
in the Mexican congress has proposed to change the Federal 
Labor Law and oblige labor union to divulge any and all 
information about a union,s internal administration. 
 
¶8.  If passed this proposed change in the law would be a 
significant and positive step in the way unions operate in 
Mexico.  The proposal would also require changes in the way 
union elections are held in order to make then more secure 
and accurate.  Currently most internal elections for union 
leadership positions are conducted via a public show of hands 
where workers can be and often are intimidated into voting 
for someone other than the candidate of their real choice. 
 
 
UNION LEADERS CRY FOUL 
---------------------- 
 
¶9.  Not surprisingly a number of union leaders, some of whom 
are members of the lower house of the national legislature, 
have denounced that proposed change in the law.  The 
criticism of the proposed change has come from union leader 
associated with Mexico,s two main opposition political 
parties, the Party of the Democratic Revolution (PRD) and the 
Institutional Revolutionary Party (PRI).  Labor leaders 
associated with these parties have accused the PAN of trying 
to do away with union autonomy as a prelude to eliminating 
legitimate worker rights. 
 
¶10.  Some labor leaders have stated that the timing of the 
PAN,s proposal to change Federal Labor Law is not motivated 
by a desire to increase the workers, (and the public,s) 
right to know.  Instead, they claim, the proposal is a 
political ploy to divert attention from the ongoing public 
outcry about the shockingly lavish home of former Mexican 
President, Vicente Fox.  Former President Fox is a member of 
the PAN.  In recent weeks he has been at the center of 
considerable (unfavorable) public comment prompted by a news 
magazine story and detailed pictures of his personal 
residence since leaving office.  Thus far there is nothing 
that would indicate that the PAN,s proposal to change 
Federal Labor Law is in anyway connected to an attempt to 
divert attention from former President Fox or the fact that 
many Mexicans are still not satisfied with the explanations 
about how his lavish personal residence was paid for. 
 
 
PROPOSING A CHANGE IS MUCH EASIER THAN ACTUALLY MAKING ONE 
--------------------------------------------- ------------- 
 
¶11.  Changing the law that has allowed serious abuse to take 
place in the name of union autonomy would be a significant 
positive step toward promoting the development a more open 
and democratic labor movement in Mexico.  However, proposing 
to change a law and actually having the votes to do so are 
two different things.  Although the PAN is currently the 
largest party in the Mexican congress it does not have enough 
votes by itself to change a law with such entrenched special 
interest support.  The proposed change has generated some 
support among legislators in Mexico,s other two main 
political parties but at present that support does not appear 
to be very widespread. 
 
 
MEXICO 00005428  003 OF 003 
 
 
¶12.  Most of the labor unions in Mexico are in one way or 
another tied to the country,s two main opposition parties 
and it is unlikely that these parties will move strongly 
against an important part of their base.  By any objective 
standard Mexico,s organized labor movement is only a 
fraction of what it once was.  For a variety of reasons (such 
as job loss due to global competition, mass migration to the 
US, a significant growth in the informal economy, etc.) the 
unions have lost membership which means they have lost votes 
and with that political power.  It has been some time since 
organized unions in Mexico were able to call the shots with 
regard to passing what they considered to be labor friendly 
legislation.  However, this does not mean that they are 
powerless.  When unions see vital interests at stake they can 
be extremely effective in voting legislation that they do not 
like. 
 
 
COMMENT 
------- 
 
¶13.  According to a Mission Mexico labor lawyer contact the 
Mexican government has been trying, unsuccessfully, to change 
the Federal Labor Law for at least 20 years.  The recent 
proposal to change the law with regard to opening up internal 
union administration to public scrutiny would undoubtedly 
work to prevent (or least somewhat restrain) abuse of union 
autonomy.  Thus far the PAN,s proposal to change this 
portion of Mexico,s labor appears to have originated with 
the party,s senatorial faction and although the proposal has 
generated a fair amount of public commentary as yet there is 
no indication of whether it has the full support of President 
Calderon,s administration.  It could be that the 
administration is waiting to see what the broader public,s 
reaction will be to proposal.  If President Calderon comes 
out strongly in favor of the proposal its chances of becoming 
law will greatly improve.  However, to date there has been no 
indication that President Calderon and his administration are 
prepared to take on the union over an issue that will greatly 
complicate the lives of some very entrenched special 
interests. 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
BASSETT