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ZNR UUUUU ZZH
R 192050Z JUN 08
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC 2277
RUEHC/DEPT OF LABOR WASHINGTON DC
INFO RUCNCAN/ALL CANADIAN POSTS COLLECTIVE
RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEAUSA/DEPT OF EDUCATION WASHINGTON DC
RHMFIUU/DEPT OF ENERGY WASHINGTON DC
RUEAHLA/DEPT OF HOMELAND SECURITY
RHMFIUU/CDR USSOUTHCOM MIAMI FL
RHEHNSC/NSC WASHINGTON DC

UNCLAS SECTION 01 OF 04 MEXICO 001869 
 
SIPDIS 
 
DEPT FOR DRL/AWH AND ILSCR, WHA/MEX AND USDOL ILAB 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ENRG SOCI PINR PGOV PHUM MX
SUBJECT: TEACHERS AND PETROLEUM WORKERS UNIONS FORM 
ALLIANCE TO PROMOTE &A NEW LABOR POLICY IN MEXICO8 
 
¶1.  Summary:  On May 30 the leaders of Mexico,s National 
Teachers, Union (SNTE) and the Petroleum Workers Union 
(STPRM) announced an alliance to promote &A New Labor Policy 
in Mexico.8  Reportedly, some 40 other unions joined the 
teachers and the petroleum workers to help advance this 
proposal.  At present this newly announced alliance appears 
to be a temporary accord aimed at promoting a specific set of 
ideas rather than a long-term arrangement to form a new labor 
organization.  According to an alliance spokesman, in 
addition to advocating for unionized workers this loose 
association of unions hopes to involve workers on the 
informal economy, labor lawyers, academics/intellectual and 
migrants in their discussions on developing a new strategy. 
The reactions to this alliance by the various elements and 
observers of Mexico,s organized labor movement span the 
spectrum from cautious support to outright condemnation. 
Thus far most of those commenting on the alliance view it 
negatively pointing out that the names of the leaders of the 
teachers, and the petroleum workers, unions typify 
everything most Mexicans identify with the most shameless 
corruption in Mexico,s organized labor movement.  That said, 
these two unions are both on very good terms with the GOM. 
Moreover, their cooperation or at least concurrence is 
essential if the administration of Mexican President Calderon 
hopes to gain legislative passage of his energy, education 
and labor reforms.  End Summary. 
 
 
MEXICAN ORGANIZED LABOR IN CRISIS 
--------------------------------- 
 
¶2.  Since at least the late 1970,s Mexico,s organized labor 
movement has suffered a slow but ongoing crisis whose origins 
are a complex combination of domestic political issues, 
global forces and large scale migration to the United States. 
Over the last 10-15 years in particular, Mexico,s labor 
unions have lost members, resources and political power.  On 
the domestic side some of the factors affecting organized 
labor include such things as stagnant and/or falling wages, 
corrupt and undemocratic unions, inter-union disputes, jobs 
lost to foreign competition, outsourcing, a poorly educated 
workforce, lax enforcement of labor laws and an all but 
officially sanctioned growth of company controlled unions 
(White Unions) and of unions which only exist on paper 
(Protection Contract Unions). 
 
¶3.  A considerable amount of study and discussion has gone 
into examining the causes behind the decline of Mexico,s 
organized labor movement. One of the most intractable 
problems facing Mexican labor has been a near constant series 
of harsh and debilitating inter-union disputes almost always 
having to do with a jockeying for power and influence among 
union leaders and little to do with disagreements with 
employers over worker rights and compensation. Countless 
forums have been held and recommendations made to address 
these problems.  So far few, if any, of these forums or 
recommendation have halted the downward slide of Mexican 
labor unions.  To their credit, the various elements of 
Mexican labor continue seek solutions to the problems facing 
the movement and in late May another such initiative was 
launched. 
 
 
TO FORM A MORE PERFECT UNION 
---------------------------- 
 
¶4.  On May 30 the leaders of Mexico,s National Teachers, 
Union (SNTE), Elba Ester Gordillo, and the Petroleum Workers 
Union (STPRM), Carlos Romero Deshamps, announced an alliance 
to promote &A New Labor Policy in Mexico.8  At the time of 
the announcement nearly 40 other unions had reportedly agreed 
to work with these two large and powerful unions in order to 
confront the problems facing Mexico,s organized labor 
movement.  The majority of the other organizations are a part 
of Mexico,s federal employees, union, FSTSE (Federation of 
Unions of State Workers). At present the purpose of this ad 
hoc alliance is to serve as a discussion and analysis group. 
However, once these matters are dealt with the group 
indicated it might consider the formation of a new labor 
federation in Mexico at some point in the future. 
 
¶5.  According to a spokesman for the alliance the item that 
 
MEXICO 00001869  002 OF 004 
 
 
finally prompted the formation of this impromptu group was 
the prospect of a sharp rise in food prices that has been 
much discussed in the Mexican media in recent weeks and 
months.  However, to paraphrase the spokesman, the possible 
negative impact on workers of a potential rise in food prices 
was only the straw that broke the camel,s back.  The leaders 
of the SNTE and the STPRM have reportedly been worried for 
some time about the deteriorating situation in Mexico for 
workers and their unions. 
 
¶6.  By coming together in an ad hoc group the leaders of the 
SNTE, STPRM and others hope to possible solutions to some of 
the problems facing Mexican workers.  In a press conference 
to announce the formation of the alliance its spokesman took 
pains to underscore that the group,s purpose was to provide 
a forum that welcomed the participation of other labor unions 
or organizations.   The alliance,s hope was that a broad 
range of unionized workers as well as workers on Mexico,s 
the informal economy, labor lawyers, academics/intellectual 
and even migrants (who are, have been or who might be going 
to the US) would join them in their discussions on developing 
a new strategy for the country,s organized labor movement. 
 
¶7.  The immediate goal of the alliance,s discussions was to 
reach agreement on ways to promote economic growth, raise 
worker salaries, create jobs, and strengthen and unify 
organized labor.  In order to do this, the spokesperson said, 
Mexican unions would have to become more transparent, work to 
eliminate protection contracts (unions which only exist on 
paper but which collect dues and control the right to truly 
organize), establish true freedom of association, and 
increase accountability of union leadership.  The stated 
longer term objective was to help ensure that Mexico,s labor 
movement would be consulted in any debates on national 
issues. 
 
 
TRUTHS MANY SEE AS SELF EVIDENT 
-------------------------------- 
 
¶8.  There are very few persons, either as participant or 
observers, of organized labor in Mexico who do not recognize 
the many problems confronting the movement.  Moreover, there 
is near universal agreement within Mexico,s organized labor 
movement that conditions for Mexican workers have 
significantly deteriorated, particularly in the past 10-15 
years.  Specifically, membership has dropped, unions believe 
there has been a significant loss of worker purchasing power, 
and the fact that union leaders are no longer easily 
nominated for elective office are some of the points the 
labor sector, jobs lost to foreign competition or unionized 
jobs lost to outsourcing are just some of the things often 
mentioned when discussing the crisis in Mexican organized 
labor.  Everyone would like to see improvements in this 
situation but there are relatively few who believe that Elba 
Ester Gordillo or Carlos Romero Deschamps are even remotely 
qualified to usher in these desperately needed improvements. 
In fact, for many Mexicans these two individuals are 
synonymous with the term &corrupt labor leaders8 and they 
symbolize the very worst elements of the country,s organized 
labor movement. 
 
¶9.  One prominent academic referred to the call by Gordillo 
and Deschamps to form an alliance as a &siren song8 that 
would entice workers to their doom.  A syndicated columnist 
for one of Mexico,s major national newspapers (Reforma) went 
to great lengths to point out the many faults of these two 
national level union leaders.  Among the points he cited, and 
which are considered common knowledge within Mexico,s labor 
movement, are such things as the fact that both Gordillo and 
Deschamps have been the leaders of there respective unions 
for an inordinate period of time, both rose to those 
positions under highly questionable circumstances, both have 
used their unions positions to amass huge personal fortunes 
and to be appointed to positions as Federal Deputies 
(equivalent to a US congressman) in Mexico,s national 
legislature.  (Note: Mexico has a proportional system of 
representation which allows political parties to appoint 
individuals to legislative office.)  Others have pointed out 
that Gordillo and Deschamps are known for their 
high-handedness, corruption and their lack of commitment to 
real freedom of association and truly democratic unions. 
 
MEXICO 00001869  003 OF 004 
 
 
 
¶10.  Among those who have spoken out against the SNTE/STPRM 
alliance (the overwhelming majority of those who have 
publicly commented) the consensus seems to be that these two 
leaders are looking out for there own interests.  For a 
variety of reasons both of these leaders have a direct and 
generally positive relationship with Mexican President Felipe 
Calderon.  Deschamps developed a close relationship with 
Calderon in the previous GOM administration when he served as 
the government,s Secretary of Energy.  Even though Gordillo 
and Calderon are in different political parties a dispute 
with the then leader and presidential nominee of her own 
party (PRI ) Institutional Revolutionary Party) prompted 
here to throw her union,s support to Calderon in Mexico,s 
2006 presidential elections.  Because of the well documented 
relation both Gordillo and Deschamps have with President 
Calderon it is widely assumed that one of the real aims of 
their ad hoc alliance is to support his administration. 
Another reason frequently cited is that both of these leaders 
are working to position themselves to be able to influence 
Mexico,s 2009 mid-term elections. 
 
 
JOBS, LIBERTY AND THE PURSUIT OF HAPPINESS 
------------------------------------------ 
 
¶11.  Despite the numerous faults that many individuals and 
groups attribute to Gordillo and Deschamps, not everyone is 
prepared to dismiss their proposed alliance out of hand. 
Three notable exceptions are the leaders of the National 
Railroad Workers Union  (STFRM), the National Workers Union 
(UNT) and the Mexican Electrical Workers Union (SME).  The 
UNT and the SME both have close ties to Mexico,s main 
opposition party, the PRD (Party of the Democratic 
Revolution) while the Railroad Workers Union is officially 
affiliated with the PRI. 
 
¶12.  None of these labor organizations have yet decided to 
join the ad hoc alliance but they have expressed a 
willingness to at least wait and see.  Like every other 
element that makes up Mexico,s organized labor movement the 
STFRM, UNT and SME are keenly aware of the problems facing 
Mexican workers.  Their initial reactions to the announcement 
of the ad hoc alliance were to acknowledge not just the 
faults of Gordillo and Deschamps but also the realities of 
what they can bring to the table. 
 
¶13.  Gordillo,s SNTE is the largest individual labor union 
in Latin America with over one million members.  Deschamps, 
STPRM is in a position to either support or significantly 
contribute to a defeat of the GOM,s plans for comprehensive 
energy reform.  In addition to the well known good 
relationship these two labor leaders have with President 
Calderon the support of their unions could well be the 
difference between the success or failure of the GOM,s other 
high priority reforms in education and labor.  Thus, Gordillo 
and Deschamps, and the unions in alliance with them, have the 
potential to greatly influence GOM policy and behavior. 
Consequently, the UNT, SME and STFRM have decided to keep 
their options open by waiting to see whether the Teachers and 
Petroleum Workers alliance will actually come up with 
anything that might eventually accomplish any of their stated 
goals and objectives before deciding whether or not to 
support their efforts. 
 
COMMENT 
------- 
 
¶14.  Most of the public commentary so far about the ad hoc 
alliance of the SNTE, STPRM and the unions who have chosen to 
join them portrayed the formation of this ad hoc group as a 
cheap trick or empty gesture to advance the personal 
interests of Gordillo and Deschamps.  In all likelihood there 
is some element of truth to this conclusion.  Nevertheless, 
it would be difficult to objectively deny the potential the 
Teachers, Petroleum Workers and other unions could 
conceivably exert to improve the lot of Mexican workers. 
Given the many problems that everyone involved with organized 
labor in Mexico freely acknowledges, it is hard to see who 
the SNTE, STPRM alliance could make things any worse. 
 
Visit Mexico City's Classified Web Site at 
 
MEXICO 00001869  004 OF 004 
 
 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
Partnership Blog at http://www.intelink.gov/communities/state/nap / 
GARZA