Mexican officials have announced the dissolution of Luz Y Fuerza del Centro, the state-run energy distribution agency that supplies energy to Mexico City and several surrounding cities. The government cited untenable funding, as federal police commandeered the building Sunday, Oct. 10.
President Felipe Calderon has moved to reduce public subsidies and shift the burden of the global economic crisis onto workers. The closure of the energy company is another step in his attacks on public institutions and services.
The Mexican Electrical Workers Union (SME), which represents the workers at Luz Y Fuerza, is Mexico’s oldest industrial trade union. It has fought hard for wage increases and participation in the management of the facility. Forty-four thousand SME workers lost their jobs with the closure.
Calderon’s latest anti-worker move has sparked a fierce fight-back movement. The day after federal police stormed the company, union members and allies took to the streets in protest. Over 100,000 people were expected at a mass demonstration Oct. 15 in Mexico City.