Mexico Factories Plead for AMLO to Intervene in Border Strikes

(Bloomberg) -- A group representing maquiladora owners is calling on President Andres Manuel Lopez Obrador to intervene in widespread strikes that followed his decree to double minimum wages at the Mexican border with the U.S.

Index, as the group is known, published full-page newspaper ads and took to Twitter after workers demanding a 20 percent raise and a 32,000-peso ($1,662) bonus walked off their jobs since January in the border city of Matamoros.

Since the leftist president took power Dec. 1, strikes have broken out in several states, including a teachers' blockade of trains in Michoacan that was unrelated to the maquiladora crisis. During his campaign, Lopez Obrador pledged to double the minimum wage nationwide over several years and to improve conditions for workers and their representation in unions.

“Immediate intervention is of vital importance to control the crisis that Matamoros is living through,” Index said on its Twitter account. In a two-page ad in El Financiero newspaper, the group said the government can't be “silent” and allow new labor practices to surprise the industrial sector without warning.

With employees getting the upper hand in several labor disputes, strikes have spread from maquiladoras, many of them producing auto parts, to companies like Arca Continental, the world's second-largest Coca-Cola bottler. At least one auto-parts maker shuttered its plant in Matamoros due to the strike, according to local news reports.

The strike at Arca won't have a significant impact on the company as it's affecting only one of its 43 facilities, representing 2 percent of its operations, Actinver analysts wrote in a research note, recommending investors buy the stock. Arca will also benefit from tax breaks at the border that Lopez Obrador decreed along with the wage hikes, Actinver said.

To contact the reporter on this story: Nacha Cattan in Mexico City at ncattan@bloomberg.net

To contact the editors responsible for this story: Vivianne Rodrigues at vrodrigues3@bloomberg.net, Walter Brandimarte

©2019 Bloomberg L.P.