In 2002, the world’s Number Two tire-maker, Continental, decided to close its “Ezaudi” factory in El Salto, Mexico, outside Guadalajara. Its thousand workers said, “This factory should stay open.”
But workers always say that. And plants usually close nonetheless.
Yet on February 18, 2008, the Ezaudi workers will celebrate three years of successful, worker-controlled operation of the El Salto tire plant. How did it happen?
The tale is long and instructive. Labor Notes plans to publish the full story, with all the details. In the meantime, here is the short version.
1. The union local had been independent since World War II. Most Mexican unions are huge, with historical connections to the PRI, the dominant ruling party. Most are bureaucratic; many are corrupt.
2. The Ezaudi union, however, had always been democratically run. In the 1990s, it had elected militant, politically aware leaders who had been part of a local coalition of union activists similar to Labor Notes in the U.S.
3. Acting decisively when faced with elimination, the union immediately declared a strike against the plant. It achieved great success in persuading the vast majority of employees to turn down the German-owned company’s “low-ball” offer—a lump-sum payment, traditionally offered in place of unemployment insurance. But the workers understood the message: “Take the cash. Lose any rights.”
They organized themselves—meetings, marches, rallies, pickets. They appealed to other workers in their area and across Mexico for aid and solidarity. The response was good.
When the company went to court, the workers responded with a legal strategy that cited some old, rarely enforced laws protecting workers. Despite opposition by the government of Vicente Fox, the union won a decision barring company removal of machinery while the strike was on.
The union appealed for solidarity internationally. [sk- I want to leave this in, even if the role of our help is unclear. Sk – “Before they went to a Union conference in Brazil, Dan LaBotz, a frequent Labor Notes contributor and author of “The Troublemakers Handbook” and “Mexican Labor, provided the name of a contact in Brazil.]
With labor union contacts they made in Brazil, the workers went to Germany and met with human rights organizations, German Watch and FIAN International, and with the German metallurgical union. With the help of their new German friends, they made another trip to state their case at Continental’s stockholders meeting, a move that received substantial publicity.
Because Continental was a sponsor of the upcoming 2006 World Cup in Germany, [Have 4 years elapsed already? You need a couple of intermediate dates for this to make sense as a sequence] the publicity came at a good time for the union.
The tale is long and instructive. Labor Notes plans to publish the full story, with all the details. In the meantime, here is the short version.
1. The union local had been independent since World War II. Most Mexican unions are huge, with historical connections to the PRI, the dominant ruling party. Most are bureaucratic; many are corrupt.
2. The Ezaudi union, however, had always been democratically run. In the 1990s, it had elected militant, politically aware leaders who had been part of a local coalition of union activists similar to Labor Notes in the U.S.
3. Acting decisively when faced with elimination, the union immediately declared a strike against the plant. It achieved great success in persuading the vast majority of employees to turn down the German-owned company’s “low-ball” offer—a lump-sum payment, traditionally offered in place of unemployment insurance. But the workers understood the message: “Take the cash. Lose any rights.”
They organized themselves—meetings, marches, rallies, pickets. They appealed to other workers in their area and across Mexico for aid and solidarity. The response was good.
When the company went to court, the workers responded with a legal strategy that cited some old, rarely enforced laws protecting workers. Despite opposition by the government of Vicente Fox, the union won a decision barring company removal of machinery while the strike was on.
The union appealed for solidarity internationally. [sk- I want to leave this in, even if the role of our help is unclear. Sk – “Before they went to a Union conference in Brazil, Dan LaBotz, a frequent Labor Notes contributor and author of “The Troublemakers Handbook” and “Mexican Labor, provided the name of a contact in Brazil.]
With labor union contacts they made in Brazil, the workers went to Germany and met with human rights organizations, German Watch and FIAN International, and with the German metallurgical union. With the help of their new German friends, they made another trip to state their case at Continental’s stockholders meeting, a move that received substantial publicity.
Because Continental was a sponsor of the upcoming 2006 World Cup in Germany, [Have 4 years elapsed already? You need a couple of intermediate dates for this to make sense as a sequence] the publicity came at a good time for the union.
The strike, the legal fight, the solidarity and the publicity had gone on for three years. Management gave up.
Continental gave 50 percent ownership to the union and 50 percent to the tire distributor. But all the distributors want is tires. [and had no interest in running the plant] Who knows how to make tires? The workers now run the factory. It turns out all those supervisors and bosses really weren’t as vital as they thought. Production has tripled since 2002.
Continental gave 50 percent ownership to the union and 50 percent to the tire distributor. But all the distributors want is tires. [and had no interest in running the plant] Who knows how to make tires? The workers now run the factory. It turns out all those supervisors and bosses really weren’t as vital as they thought. Production has tripled since 2002.
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Thanks for your input to the Steve Blog. Learning about him through one another's stories is something we can continue to enjoy, beyond his passing. May his vision, work and passions live on through our paths, and be invigorated by our stories, sharings, and dialogues.
Thanks, from niece Audrey Kindred