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Dialogue Defuses War of Nerves in the Maquiladoras

afsc.org
August 20, 2007

A firestorm of accusations in the local media has been the latest maneuver in the war of nerves between maquiladora workers in Mexico 's northern borderlands and those who are threatened by the workers' growing confidence and independence.

At issue is a labor dispute involving more than 700 workers in Piedras Negras, Coahuila, at a plant owned by Fujikura, Ltd. - a Japanese firm with headquarters in Tokyo and global operations employing more than 30,000 workers in at least 10 countries.

The dispute has spread well beyond the company and the workers, however, to involve the town's mayor, local labor authorities, local and state leaders of Mexico's old-line (and pro-business) CTM union, and area newspapers.

The target of their criticism, however, has not been the workers, but the Comité Fronterizo de Obrer@s (CFO - Border Workers Committee), an independent workers center with offices in Piedras Negras and Ciudad Acuña. Over the past two months, local newspapers have trumpeted charges that the CFO is financed by U.S. unions, with the goal of "destabilizing" the maquiladora industry and "frightening away" its investors.

Simultaneously, the mayor and the Maquiladora Association of a neighboring maquiladora town, Ciudad Acuña, have made similar accusations. Even though their charges were not related to the Fujikura issue, the combination created the impression that all of a sudden the powers-that-be in the area were, as one journalist wrote, "all against the CFO."

Currently, the underlying dispute involves Fujikura Automotive Mexico, the former "Subaru plant" in Piedras Negras. The plant used to be operated under a joint venture between Fujikura and Alcoa. When the arrangement was ended in 2005, Fujikura became the sole owner of the plant, which now manufactures automotive wire harnesses for Subaru's Tribeca; Toyota's Tundra, Camry and Corolla; and the Jeep Wrangler, among other vehicles.

Problems between Fujikura and its 725 workers in Piedras Negras came to a head in early June, when the company announced plans to lay off all its workers, void their collective bargaining agreement, and rehire them under new (and undoubtedly less attractive) terms. When ownership of the Subaru plant passed from Alcoa to Fujikura in 2005, the company pledged to honor the workforce's existing contract - a pledge it now claims is too expensive, despite its strong economic performance overall and long-term plans to increase its presence in Mexico.

In the volatile labor market of the maquiladora industry, the Fujikura workers have not attempted to fight the mass layoffs; instead, they have insisted in receiving the fully-loaded severance package to which they are entitled under Mexico's labor code, including an additional 20 days of salary for each year of seniority. (Alcoa, their former employer, routinely granted the 20 days in the case of layoffs due to workforce reductions.)

The stakes are high for the Fujikura workers in the battle over the terms of their severance agreement, because a third of them are over 35 - considered "old" for the maquiladoras - and they are not likely to find another job in the industry. Although the company has pledged to rehire the workers if their contract offer is accepted, those who opt to continue with the firm would lose their accumulated seniority - and with it an array of benefits. Meanwhile, particularly for older workers, the prospect of compensation weighs more heavily than continued employment, especially with reduced wages and benefits.

Industry advocates have been accusing the CFO of giving "poor advice" to the Fujikura workers, so in a recent issue of the Zócalo (Piedras Negras), CFO leader Julia Quiñonez responded to the charges. "It makes no sense to accuse us of destabilization," noted Quiñonez, "when our focus is on solving problems through dialogue and negotiation."

"Where is the crime," she added, "in developing relationships with U.S. unions?" In a globalized world, she noted, it only makes sense for the CFO to maintain close relations with unions in the United States and other countries, as well as international bodies based in Geneva and sympathetic religious organizations and researchers.

Accusations that U.S. unions are angling to get the wire harness jobs to return are difficult to sustain. In a labor-intensive process like wire harness fabrication, a lower-wage country like Mexico offers advantages that U.S.-based operations cannot hope to match. Mexico, meanwhile, with its skilled industrial workforce, offers Fujikura and other manufacturers of auto parts an ideal platform for doing business with automakers serving the North American market.

The move by Fujikura management came a scant three months after the workers fought successfully for a wage increase of 4.5 percent, overriding the advice of their official union representative, Leocadio Hernández, who heads the CTM for all of Piedras Negras. Leocadio had already signed an agreement with a smaller increase, without consulting with union representatives at the plant level.

The visibility gained through their current struggle, and the relationships developed with local media outlets, have changed the local environment dramatically. For example, area reporters were invited by the workers to attend two meetings of the local union membership, at which the rank and file voted overwhelmingly to persist in their struggle for the 20 days of additional compensation. The workers also refused in the first of these meetings to allow their deliberations to be derailed by an attempt at discrediting the CFO, offering clear evidence that they support the CFO and value its support. Meanwhile, the CFO has also been able to tell its side of the story effectively through the local press.

Despite the media-fueled smearing of its leader, Julia Quiñonez, the CFO decided to pursue face-to-face meetings with the mayors of Piedras Negras and Ciudad Acuña. As the officials listened directly to CFO members speak about their work, the tensions were defused. The CFO shares the mayors' legitimate concern for keeping the maquiladora jobs in their towns, although it also emphasized that well-paying jobs would actually do more for local economies than cutting the industry's already depressed wages in half. The meeting between the CFO and the Acuña mayor established common ground and both parties demonstrated a willignness to explore working together.

Others, however, will probably remain disgruntled as the workers continue to challenge long-standing sweetheart deals between management and CTM higher-ups and the web of cozy relationships with local labor boards and elected officials. Meanwhile, the CFO and the workers in Fujikura, Alcoa and other maquiladoras are adding dialogue with managers and government officials to their toolbox, as one more way they can leverage their growing determination to defend their rights.

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Comité Fronterizo de Obrer@s (CFO)
Monterrey #1103, Col. Las Fuentes
Piedras Negras, Coahuila
C.P. 26010, México