Identifier
Created
Classification
Origin
06MEXICO991
2006-02-23 19:55:00
UNCLASSIFIED
Embassy Mexico
Cable title:  

EMPLOYING MEXICO'S INCARCERATED, ONE MAQUILA AT A

Tags:  EIND EINV PGOV MX 
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VZCZCXRO6988
RR RUEHCD RUEHGD RUEHHO RUEHMC RUEHNG RUEHNL RUEHRD RUEHRS RUEHTM
DE RUEHME #0991/01 0541955
ZNR UUUUU ZZH
R 231955Z FEB 06
FM AMEMBASSY MEXICO
TO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEAWJA/DEPT OF JUSTICE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
RUEHC/SECSTATE WASHDC 9184
UNCLAS SECTION 01 OF 02 MEXICO 000991 

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EIND EINV PGOV MX
SUBJECT: EMPLOYING MEXICO'S INCARCERATED, ONE MAQUILA AT A
TIME


UNCLAS SECTION 01 OF 02 MEXICO 000991

SIPDIS

SIPDIS

E.O. 12958: N/A
TAGS: EIND EINV PGOV MX
SUBJECT: EMPLOYING MEXICO'S INCARCERATED, ONE MAQUILA AT A
TIME



1. SUMMARY. U.S. based Kojo Industries is working with the
GOM and Mexican State governments to construct and operate
maquiladoras at prisons throughout Mexico. The program is
intended to reduce crime and encourage dual parenting while
providing employment both during and after incarceration.
Kojo has reached agreements with seven Mexican states.
Currently one prison maquila is operating and a second is
near completion. Mexico currently has approximately 110,000
prisoners of whom Kojo feels 25 percent are qualified to
work. According to Kojo's calculations, maquilas in Mexico
would have to shift less than two percent of their current
employment levels to the prisons to allow all eligible
prisoners to be employed. Kojo's promise to President Fox of
creating 200,000 jobs over five years seems unrealistic,
particularly with upcoming elections removing virtually all
officials who have supported the project from power. END
SUMMARY.

MAQUILA DESIGN
--------------


2. Joe Robertson, chief of Kojo Industries, has developed
Industrial Rehabilitation Centers (CEINRE) in partnership
with the GOM. Under the program, the GOM is responsible for
constructing two maquilas at each prison which are then
purchased by CEINRE. The maquila located outside of the
prison opens first, followed by a "clone" maquila on the
inside. The GOM is also responsible for providing prisoners
who are willing to work full time six days a week, and
designating entry/exit points where products and supplies can
be received without delays.


3. Kojo Worldwide is based in Otay Mesa, California and has
facilities in both the U.S. and Mexico. The company is the
world's largest producer of bedcovers and draperies for the
hospitality industry. Kojo had USD 40 million in sales in
2004 and projected sales of USD 60 million in 2005.
Robertson has had prior experience with prison industries in
the U.S. (Robertson, a U.S. citizen, proposed this project
to President Fox but explained that in order for buy-in a
Mexican national should be given control. Fox agreed with
the assessment and granted Robertson Mexican citizenship.)

THE IDEAL PRISONER
--------------



4. When choosing prisoners to participate in its program,
CEINRE seeks married prisoners with children, married
prisoners without children, and single prisoners in that
order. CEINRE provides employment to both the prisoner and
their spouse and has developed this selection preference in
order to reduce crime and encourage dual parenting. The
organization believes that many spouses of inmates engage in
crimes such as prostitution and drug sales in order to
support families who lose the bread winner when the
husband/father is incarcerated. The maquila gives the
prisoner's spouse a legitimate job and money with which to
support herself and her family, as well as the ability to
participate in government programs like social security.
Inmates must have at least a year remaining on their sentence
in order to be selected. They receive six months of job
training before starting their job.

FROM CELL TO OFFICE
--------------


5. Once inmates have completed their training inside the
prison, their spouses are immediately given employment at the
maquila located outside of the prison. Kojo helps released
inmate workers find a job at the maquila that is outside of
the prison similar to the one they had inside when they are
released.

CURRENT MAQUILAS AND GOVERNMENT INVOLVEMENT
--------------


6. A maquila located in a Chetumal prison currently employees
80 people on two shifts making duvets (quilt covers). A
maquila in a Campeche prison to make draperies is near
completion and will be inaugurated by President Fox. The GOM
has agreed to support state governments in the development of
the infrastructure necessary at the prisons for maquilas.
The states of Quintana Roo, Campeche, Yucatan, Veracruz,
Hidalgo, Baja California and Chihuahua have all signed
Agreements of Interest with CEINRE.

IF YOU BUILD IT THEY WILL COME
--------------


7. Robertson promised President Fox the creation of 200,000

MEXICO 00000991 002 OF 002


jobs within five years. CEINRE is currently well short of
that goal. The current prison maquilas are both maquilas of
his own company, Kojo. The biggest challenge facing Robertson
remains convincing other maquiladora companies to move their
current operations to the prisons and/or expand there.
Businesses who agree to participate in the program sign a
contract agreeing to hire the spouse and hire the inmate upon
his release from prison. In return the maquila receives a
reduced labor cost and the maquila located inside the prison
rent free.

COMMENT
--------------


8. Although CEINRE substantially reduces maquila operating
costs, the creation of 200,000 jobs in five years seems
highly unlikely due to prisons lacking the appropriate
infrastructure for the maquilas and a lack of other companies
willing to participate in the program.



Visit Mexico City's Classified Web Site at
http://www.state.sgov.gov/p/wha/mexicocity

KELLY