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Mexico's Calderón Takes on Big Labor
The Wall Street Journal ^ | 10/19/2009 | Mary O'Grady

Posted on 10/20/2009 3:15:49 PM PDT by Ge0ffrey

Eight days ago, just after midnight on a Sunday morning, Mexican President Felipe Calderón instructed federal police to take over the operations of the state-owned electricity monopoly, Luz y Fuerza del Centro (LyFC), which serves Mexico City and parts of surrounding states. The company's assets will stay in the hands of the government but will now be run by the Federal Electricity Commission (CFE), a national state-owned utility and the major supplier of LyFC's energy.

The net effect of the move is to dethrone 42,000 members of the Mexican Union of Electricians, which had won benefits over the decades to make Big Three auto workers in Detroit blush. When the liquidation is complete, it is expected that the company will employ about 8,000. To appreciate the magnitude of Mr. Calderón's decision, think of Ronald Reagan's firing of the air traffic controllers—only bigger. As one internationally renowned Mexican economist remarked on Sunday, it is "the most important act of government in 20 years."

Why is it such a big deal? For starters, because the Mexican political system, since the Revolution of 1910, has been dominated by the power of organized labor. In Mexico's corporatist theology, the people are taught to worship the State, and the State bows to the union bosses, who symbolize economic nationalism.

Somewhere in this idealism is the promise to elevate workers, as Diego Rivera envisioned in his anticapitalist murals featuring masses of clenched fists. Yet all Mexican corporatism ever did was make the country poorer. The most famous example of this is the state-owned oil monopoly, which thanks to union rule is incapable of monetizing the millions of barrels of black gold it sits on. LyFC is an equally good example of how unionism has been destroying Mexico's future.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Crime/Corruption; Foreign Affairs; Mexico; News/Current Events
KEYWORDS: caldern; laborunions; mexico

1 posted on 10/20/2009 3:15:49 PM PDT by Ge0ffrey
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To: Ge0ffrey

Good for him, I have new respect for Pres. Calderon having the guts to take on the unions.

The drug cartels are like jaywalkers in comparison to the level of corruption and criminality of the labor unions.

The union thugs can bring the Mexican economy to its knees if Pres. Calderon is not careful.

2 posted on 10/20/2009 3:35:32 PM PDT by AreaMan
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To: AreaMan

And they are heavily communist to boot.

3 posted on 10/20/2009 3:36:47 PM PDT by AmericanVictory (Should we be more like them or they more like we used to be?)
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To: AmericanVictory
And they are heavily communist to boot.

Sadly, I would say that most of the rank and file members are not aware of that. They probably just see it as "getting their piece of the action"

Communists (a.k.a. Socialists in a hurry) rarely sell it straight.
What did P.J. O'Rourke say:
Liberalism is just Communism sold by the drink.

4 posted on 10/20/2009 3:50:19 PM PDT by AreaMan
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To: Ge0ffrey; GOPsterinMA; woerm; bert; altura; bunster; waterhill; FlyingEagle; Playa Pete; ...


If you want on, or off this S. Texas/Mexico ping list, please FReepMail me.

5 posted on 10/20/2009 4:07:38 PM PDT by SwinneySwitch (Mexico - beyond your expectations!)
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