DISSIDENTS IN SOCIAL SECURITY WORKERS, UNION RENEW

UNCLAS SECTION 01 OF 03 MEXICO 000859 SIPDIS SIPDIS DEPT FOR DRL/AWH AND ILCSR, WHA/MEX AND PPC, USDOL FOR ILAB E.O. 12958: N/A TAGS: ELAB ECON PHUM PINR MX SUBJECT: DISSIDENTS IN SOCIAL SECURITY WORKERS, UNION RENEW ATTEMPTS TO OVERTURN 2006 LEADERSHIP ELECTIONS ¶1. SUMMARY: In October 2006, the National Union of Social Security Workers (SNTSS) held a national convention to elect new union leadership. Despite obvious voting irregularities and ultimately violence, the election results were nevertheless confirmed by the administration of Mexico,s then outgoing President. The losing side in these elections never accepted their results and has now turned to the new government of President Felipe Calderon to press their case. With some 350,000 active members and another 150,000 retirees who still retain substantial union rights, the SNTSS is the largest single public service union in Mexico. Moreover, the SNTSS is one of Mexico,s more politically active unions, often at the forefront of anti-government protests. The SNTSS leadership sided with losing PRD party candidate Lopez Obrador in Mexico,s July 2006 presidential elections but is now flirting with the PRI; Mexico,s other main opposition party. For their part, the dissents hope to enlist the aid of the ruling Nation Action Party (PAN) in the leadership struggle. Given the SNTSS, size, the outcome of the union leadership dispute could well provide one of Mexico,s principal political parties with a substantial number of politically active foot soldiers. END SUMMARY. A FLAWED UNION ELECTION -------------- ¶2. In October 2006, the National Union of Social Security Workers (SNTSS) held a national convention to elect new union leadership. At stake were the offices of the union leader, its Secretary General and the seats of its National Executive Committee (CEN). At the start of the electoral process five potential candidates to become Secretary General but when the balloting finally took place only two of them were actually allowed to compete. Throughout the election the five contenders had effectively formed into two groups. The first, with two candidates was closely associated with outgoing Secretary General Roberto Vega Galina. The other three contenders, although they campaigned separately, had nevertheless formed an alliance called the &Democratic Coalition8 (DC). ¶3. According to the DC, the two candidates associated with outgoing Secretary General, Roberto Vega Galina were hand picked by him to take over the union leadership. These two contenders, Valdemar Gutierrez Fragoso and Joaquin Castillo, both went through the steps of a campaign but the DC alleged that this was only done so Vega Galina could claim the winner had been democratically elected. The DC claimed that there was never any doubt that the winner of what they described as a rigged election would be Valdemar Gutierrez Fragoso; Vega,s real choice for successor. The lopsided results of the election give some credence to the DC,s claim. Of the 850 convention delegates ultimately authorized to cast ballots, 800 of them voted for Valdemar Gutierrez while only 50 voted for Joaquin Castillo. PROBLEMS BEFORE, DURING AND AFTER THE ELECTIONS -------------- -- ¶4. Union leadership elections in Mexico are often hard fought and the election for Secretary General of the SNTSS was no exception. Because of concerns of a rigged election, the leaders of the Democratic Coalition attempted to prevent the balloting from ever taking place by filing charges with then Mexican President Vicente Fox,s Labor Secretariat (STPS) against Vega for misappropriation of union funds. Had the charges stuck, Vega Galina would have been removed from his post as Secretary General and thus prevented from calling for a national convention. By most accounts the Labor Secretariat at first publicly agreed to press charges against SIPDIS Vega Galina and then, inexplicably, changed its mind claiming that Mexico,s Federal Labor Law prevented it from taking action to remove a recognized union leader from office unless that action had first been approved by the union,s National Executive Committee. ¶5. During the election itself, which took place on October 12 in the state of Michoacan, violence and balloting irregularities seems to rule the day. On the day of the election the organizers of the national convention initially refused to give credential to any member of the DC or its supporters. Without a credential, a union delegate would not be admitted to the convention floor and thus unable to vote. Ultimately the convention organizers agreed to give credentials to the DC candidates themselves but not to the MEXICO 00000859 002 OF 003 group,s supporters. When this decision was announced rioting broke out and the dissidents and their supporters tried to force their way into convention. The rioting was only put down when Michoacan state police were called in and eventually disbursed the rioters with tear gas. ¶6. While the rioting was going on, Vega Galina and Valdemar Gutierrez conducted what the media called a &Fast Track8 ballot to quickly conclude the election. A video tape made by one of the delegates recorded a call for an election by show of hands, the formal nomination of the two eligible candidates and a counting of the votes. The tape, which was anonymously released to the media and also given to the STPS, ran for 25 seconds. During that time the convention organizers declared Valdemar Gutierrez the winner after claiming to have faithfully counted the votes of all 850 authorized delegates. ¶7. After the rioting and the &Fast Track8 balloting, the Democratic Coalition filed fraud charges with the then Fox administration STPS. The STPS acknowledged that the vote for the new SNTSS Secretary General was &fast8 but averred that that by itself did not necessarily invalidate the election. It then declared that it would carefully study all information provided by both the winners and losers to decide on the fairness of the election. Ultimately, on the evening of October 31, 2006, the STPS validated the election of Valdemar Gutierrez and shortly thereafter gave him a &toma de nota8, official written GOM recognition of his election as SNTSS Secretary General. ¶8. The DC immediately protested the STPS decision and promptly filed an injunction with the appropriate judicial arbitration authorities to have the election results overturned. No real action on the injunction was taken for the reminder of the Fox administration, which left office on December 1, 2006. A DC member told Labor Counselor that the group believes the Fox administration was so concerned with such problems as Mexico,s disputed presidential election, the ongoing civil unrest (that began as a labor dispute) in Oaxaca and the problems arising from a long running dispute in the national miners, union that it simply was not prepared to taken on another labor related fight so near to the end of its term of office. A NEW GAME WITH A NEW REFEREE -------------- ¶9. Despite repeated protests the DC was unable to get the Fox administration to reconsider its decision to officially recognize Valdemar Gutierrez,s victory. It therefore decided to bide its time and has now begun to press its case with the new administration of President Felipe Calderon. For the most part the DC is pushing forward with its formal legal charges but it has also launched an extensive public relations campaign against Gutierrez. It has also quietly hinted that an SNTSS headed by the DC would be much more receptive to the ideas of President Calderon,s ruling National Action Party (PAN). Thus far there is no indication that the Calderon government is taking particular note of the SNTSS leadership dispute. However, STPS officials in the Calderon government have commented, in general terms, to Labor Counselor, their awareness of many errors made by the previous administration, especially in the area of resolving union leadership disputes. These same officials affirmed the new government,s determination to correct these errors. THERE IS A LOT ON THE TABLE WITH THE SNTSS -------------- ¶10. Although the Calderon government has not gone out of its way to step into the SNTSS leadership dispute, many observers of the labor scene in Mexico have pointed out that this particular union is too important to ignore for long. The SNTSS has some 350,000 active members and another 150,000 retirees who still retain substantial union rights. Moreover, the SNTSS is the largest single public service union in Mexico (as opposed to other public service unions who mainly function as part of a labor federation). The SNTSS is also one of Mexico,s more politically active unions, often at the forefront of anti-government protests. Its contract with the Mexican Social Security Institute (which administers the country,s national health service and pension system) costs the GOM,s current federal budget approximately 4.5 billion pesos (USD 412.8 million) of which MEXICO 00000859 003 OF 003 some 602 million peso (USD 55.3 million) are specifically earmarked for union expenses. ¶11. Like most public service unions in Mexico the SNTSS had traditionally been closely associated with the country,s former ruling party, the Institutional Revolutionary Party (PRI). However, during the years of the Fox administration the SNTSS leadership aligned itself with the Party of the Democratic Revolution (PRD) and played a major role in the failed 2006 candidacy of that party,s presidential nominee, Andres Manuel Lopez Obrador. Now however, the SNTSS is carefully weighting its options and is at present considering a return to the PRI. Valdemar Gutierrez has openly stated his preference for the PRI, but only on condition that that party offered SNTSS members slots as party candidates in Mexico,s 2009 mid-term elections. It is not yet clear to what extent the PRI is prepared to negotiate with the SNTSS over future candidacies. COMMENT -------------- ¶12. According to many recent media reports, the union is also facing serious financial difficulties in addition to the SNTSS, leadership troubles. The union,s outgoing Secretary General left his successor a SNTSS debt of roughly 35.5 million pesos (roughly USD 3.3 million) This could mean that the support of the SNTSS could be available to the highest bidder. Given the SNTSS, size, and the reports of its weakened financial situation, the outcome of the union leadership dispute could well provide one of Mexico,s principal political parties with a substantial number of politically active foot soldiers. Moreover, the willingness of the SNTSS leadership to keep its members at their jobs in the national health care system or on the streets engaging in anti-government protests, could be a serious plus or a significant minus to the current government,s plans to promote Mexico as country whose labor climate facilitates job creation and foreign investment. 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