Business leaders meet with Mexico's President

On Monday, a group representing some of Mexico’s biggest companies told President Andrés Manuel López Obrador that politicians should resist “ extortion ” by labor unions after strikes and blockades in recent weeks.

Alejandro Ramírez, president of the Mexican Business Council

, said strikes at factories in the northern state of Tamaulipas and blockades of railways by a teachers union had caused more than a billion dollars in losses and could cause businesses to close.

Members of the group, including Mexico’s second-richest man, German Larrea , who controls mining and transport conglomerate Grupo México , were critics of López Obrador before the July 1 election, warning that voters should be wary of populism.

“In labor matters, we look favorably on Mexicans starting a new era of union freedom that will allow the end of old protectionist practices for a few unions and companies,” said Ramírez , chief executive of cinema chain Cinépolis .

“Freedom of association and respect of the rule of law should be the axis of this new labor reform. For that reason, we make a respectful call to lawmakers of all parties that it doesn’t just guarantee union freedom but also avoids union extortion.”

Since taking office, López Obrador a nd members of the ruling party have sought regulation in areas ranging from banking and pensions to mining to make services cheaper for consumers .

The President wants to encourage investment to drive growth, but some worry regulation will be heavy-handed and unpredictable.

Morena

, the party created by López Obrador , is planning a reform to make it easier for workers to form i ndependent unions . Traditionally, unions have allied with the former party of power, the Institutional Revolutionary Party ( PRI ).

López Obrador

brought veteran union leader Napoleon Gómez into his party as a senator. Gómez has a history of conflict with Grupo México , including strikes .

Last week, Gómez founded a federation called the International Workers Confederation.

Monday’s event was the first time the group met with López Obrador since he took office in December. Earlier in the day, he met the Council for Investment Promotion, Job Creation and Growth, a body he created to advise on economic policy.

Labor strikes

in January at manufacturers in the city of Matamoros , on the U.S. border , cost about USD $50 million a day in unfulfilled international contracts .

Teachers

from the National Committee of Education Workers ( CNTE ) blocked railroad tracks for weeks in January to protest labor demands.

1,500 workers laid off after strikes in Tamaulipas

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