Around 15 companies announced that they would leave Mexico due to the government’s failure to act in face of illegal strikes from factory employees in the city of Matamoros, Tamaulipas . According to private sector representatives, said strikes have generated losses of USD$50 million a day .

Luis Aguirre Lang, chairman of the National Council of the Maquiladora Export Industry (CNIME)

, said that the companies had been rendered powerless due to a lack of respect for the rule of law and because the government had refused to intervene to restore social order.

“We are talking about 15 companies that are planning to leave the country . They’re mostly from the automotive and energy sectors . The names of the firms will be announced as soon as their corporate leaders authorize the decision. These companies represent around 30 thousand direct jobs ,” he stated.

The council representative claimed that companies such as Cepillos de Matamoros (Matamoros Brushes) would leave the country, while others such as Aptiv have reduced their investment. He also mentioned an automotive parts company that had canceled plans to invest in Mexico.

Workers from 45 manufacturing firms were involved in the labor dispute, leading to an illegal strike in 40 companies, though 13 of them did not formally call for a strike.

Aguirre explained that the workers’ request was based on a decree by which the federal government planned to increase the minimum wage in the border region by 5% . The decree was misinterpreted and employees are now asking for 20% raises, as well as an annual bonus of MXN$32,000 .

Furthermore, the workers union led by Napoleón Gómez Urrutia and activist Susana Prieto are now involved in the dispute. Though 12 companies have granted these requests , the strikes have continued, generating losses of USD$50 million a day .

The chairman criticized the absence of the Ministry of Labor . “I have informed both the Ministry of Finance and the Ministry of Interior of the strikes and the financial risks they entail. We need to act on this, because it cannot be solved locally. We are being invaded by external actors that have nothing to do with conflict resolution or the companies’ production,” he said.

The problem is that some companies have announced their withdrawal from the region. The inaction by the Mexican government sets a bad precedent. “45 productive plants in Matamoros are being smothered. Companies from the automotive, auto parts, and electronics sector are being extorted by this group of people,” added the board director.

Faced with this problem, four institutions from the private sector are now supporting CNIME’s request and have asked the federal government to intervene and “mediate” in the resolution of the labor dispute.

The Corporate Coordinating Council (CCE), the Confederation of Industrial Chambers (CONCAMIN), the Mexican Association of Automotive Industry (AMIA), and the National Iron and Steel Chamber explained that, though some companies had “accepted the excessive demands to avoid breaking contracts signed as suppliers from the automotive sector,” this could have disastrous consequences with regard to employment sources.

The Ministry of Labor and Social Security has called for an open dialogue with workers and businessmen of Matamoros, Tamaulipas to solve the conflict.

The government body, led by Luisa María Alcalde , is contributing to resolve the conflict by sending conciliators for the negotiation of the collective contract and has continued to participate even after the start of the strike.

The ministry deemed it unlikely that more companies near the northern border would go on strike for wage increases.

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