MEXICO: On October 15, more than 100,000 people marched in Mexico City to protest the sacking of 45,000 workers by the national government when it shut down the city's electrical utility. Earlier, on October 10, thousands of Federal Police seized the plants of the state-owned Central Light and Power Company (Luz y Fuerza del Centro), which provides electricity to Mexico City and several neighbouring states.

Minutes later the government of President Felipe Calderón announced that the company would be liquidated and all its approximately 45,000 workers fired, which would mean the destruction of the Mexican Electrical Workers' Union (SME) and elimination of its members' collective agreement and pension benefits for 20,000 retirees.

The SME is one of Mexico's oldest independent trade union organizations with one of the best collective agreements in the country. It has been playing a leading role in the fight against privatization, proposed regressive reforms to the Federal Labour Law, and other neoliberal policies.

Secretary of Labor Javier Lozano declared in September that SME's internal elections were invalid and that General Secretary Martín Esparza and other officers would not be recognized by the government. Without legally recognized officials, the union cannot engage in contract negotiations or other activities.

"This act of aggression on an independent union that campaigns for progressive change for Mexican people comes as no surprise to the IMF. The attack on the SME is not dissimilar to the attacks we have seen on IMF affiliate the Mexican Miners' Union since 2006," said IMF General Secretary Jyrki Raina.

"This most recent attack against SME and independent unions in Mexico is truly shocking and will not be tolerated by the international community. The government's actions, including the use of the police and the military, breaches all international norms and represents a serious set-back to democratic life in Mexico," added Raina.

Together with the International Federation of Chemical, Energy, Mine and General Workers' Unions (ICEM), the IMF sent a letter to President Calderón on October 14 protesting the breach of international labour standards and calling on the President to "directly and promptly to reverse this decision, restoring the full independence and autonomy of the SME trade union".