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24 August, 2000VW management in Puebla appealed to a government agency to get the strike by 12,600 workers declared illegal.
MEXICO: The International Metalworkers' Federation is extremely disturbed over developments at Volkswagen Mexico in Puebla. When 10 days of wage negotiations broke down on August 18 and workers at the Puebla plant went on strike, the management of VW Mexico appealed to the Federal Conciliation and Arbitration Board (CAB) to get the strike declared illegal. The CAB ruled the strike "inexistent" and ordered the workers to end the walkout within 24 hours on pain of dismissal. Its decision was based on a technical pretext that banners announcing the strike were not properly displayed. Threatened with the loss of their jobs, the workers returned to work, although the VW union will continue to mobilise in support of its demands.
In a letter of protest to VW Mexico management, Marcello Malentacchi, IMF general secretary, states that the CAB decision is "blatant government interference in the collective bargaining process" and, in effect, a violation of ILO conventions, which Mexico, as an ILO member, is pledged to uphold. "We are especially disappointed," writes Malentacchi, "to learn that it was VW management which sought this decision from the CAB." Malentacchi said this could not be reconciled with what was previously thought about VW management. Up to now, the company always claimed to resolve conflict with dialogue, and not with other instruments. However, now, instead of negotiating in good faith, VW called on an outside agency, which has long been used to stifle legitimate worker and union demands, to declare the strike illegal. Malentacchi urged VW to return to good faith negotiations with the VW union.
In a separate letter to Mexico's minister of labour, the IMF general secretary urged him to intervene to ensure that the decision of the CAB is overturned and that the right of VW Puebla workers to pursue their interests, including the right to strike, is restored. "In no democratic state would an order based on such flimsy justification and threatening such draconian punishment be admissible," declared Malentacchi. "In effect, it denies the affected workers the right to strike in support of their collective bargaining aims. As such, it is another of many examples which demonstrate that the CAB, instead of assisting in reaching settlements, is an instrument to deny legitimate worker demands."
The wage dispute at VW in Puebla involves 12,600 production workers. The last union demand before the CAB order was for a pay hike of 20%, with management offering 12%. Company sales in Mexico increased by 47% in the first half of 2000, compared with the same period in 1999. The plant is the only producer of the "New Beetle" model and the only remaining plant where the "VW Bug" is still made. It also makes Jettas and Golf convertibles. Daily production averages 1,540 cars.
In a letter of protest to VW Mexico management, Marcello Malentacchi, IMF general secretary, states that the CAB decision is "blatant government interference in the collective bargaining process" and, in effect, a violation of ILO conventions, which Mexico, as an ILO member, is pledged to uphold. "We are especially disappointed," writes Malentacchi, "to learn that it was VW management which sought this decision from the CAB." Malentacchi said this could not be reconciled with what was previously thought about VW management. Up to now, the company always claimed to resolve conflict with dialogue, and not with other instruments. However, now, instead of negotiating in good faith, VW called on an outside agency, which has long been used to stifle legitimate worker and union demands, to declare the strike illegal. Malentacchi urged VW to return to good faith negotiations with the VW union.
In a separate letter to Mexico's minister of labour, the IMF general secretary urged him to intervene to ensure that the decision of the CAB is overturned and that the right of VW Puebla workers to pursue their interests, including the right to strike, is restored. "In no democratic state would an order based on such flimsy justification and threatening such draconian punishment be admissible," declared Malentacchi. "In effect, it denies the affected workers the right to strike in support of their collective bargaining aims. As such, it is another of many examples which demonstrate that the CAB, instead of assisting in reaching settlements, is an instrument to deny legitimate worker demands."
The wage dispute at VW in Puebla involves 12,600 production workers. The last union demand before the CAB order was for a pay hike of 20%, with management offering 12%. Company sales in Mexico increased by 47% in the first half of 2000, compared with the same period in 1999. The plant is the only producer of the "New Beetle" model and the only remaining plant where the "VW Bug" is still made. It also makes Jettas and Golf convertibles. Daily production averages 1,540 cars.