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IMF makes strong statement on VW Mexico

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22 August, 2001The IMF has expressed particular concern that VW is requesting the nullification of the strike.

MEXICO: The IMF general secretary, Marcello Malentacchi, has written today (August 23) to Francisco Bada, vice-president of Volkswagen, Mexico, to express the IMF's extreme concern at developments at VW Mexico in Puebla, and in particular at comments made by the VW vice-president in the Mexican press that Volkswagen "had requested the federal government to nullify the strike [at the Puebla plant]." (TheNewsMexico.com - 8/20/2001)
"Almost exactly one year ago," writes Malentacchi, "I unfortunately had cause to write to Mr. B. Leissner after a ruling by the Federal Conciliation and Arbitration Board (CAB) that resulted from a similar request by VW. Under the present circumstances, I can do no better than to quote our earlier letter:
["In our view, the CAB decision is blatant government interference in the collective bargaining process. Moreover, we believe that declaring a strike 'inexistent' and ordering the workers to end it within 24 hours on pain of dismissal is, in effect, a violation of the conventions of the International Labor Organization (ILO).
We are especially disappointed to learn that it was VW management, which sought this decision from the CAB. Frankly, we do not understand how this can be reconciled with what we thought was the VW policy of resolving collective bargaining issues through dialogue.
Instead of negotiating in good faith, you called on an outside agency, which has long been used to stifle legitimate worker and union demands, to declare the strike illegal...
Volkswagen's participation in such legal manipulations is a great disappointment to us. Moreover, it is unlikely to lead to the results we all desire -- a resolution of conflicts, a productive workplace and decent incomes for workers.
Consequently, I urge you to desist from this ill-considered move to undermine the VW union and to return to good faith negotiations to settle the outstanding issues."]
In his letter of today to Mr. Bada, Malentacchi states that the IMF will not content itself with addressing annual protest letters to Volkswagen management concerning its attempts to declare strikes unlawful. "The ILO as well as the OECD Guidelines for Multinational Corporations offer the possibility of redress in such situations. The latter are of particular interest because they allow us to submit complaints to national government contact points in Germany as well as Mexico. Knowing of the generally positive industrial relations at Volkswagen and its good public image, we would take such a step regretfully. Consequently, let me urge you to immediately withdraw the request for 'nullification' of the Puebla strike and negotiate all outstanding issues in good faith with the union."