Vol.59/No.17           May 1, 1995 
 
 
In Brief  

Wages up for Sao Paulo workers
Auto workers organized by the metalworkers union in Brazil's Sao Paulo region recently won an 18 percent pay increase and a reduction in working hours from 44 to 42 hours a week. Ten percent of the pay increase covers inflation since November. The union previously won a 15.8 percent wage increase to cover inflation before November.

The agreement covers some 110,000 workers, 60 percent of whom work in auto plants, most of them owned by Ford and Volkswagen. Demand in the Brazilian auto industry has risen sharply; car production hit a record 151,000 vehicles in March. There are about 33,000 auto parts workers who have not reached an agreement and are threatening a strike. Some 20,000 General Motors workers have been on strike since April 4 fighting for a contract.

No May Day as usual in Mexico
Fidel Velazquez, president of the Mexican Workers Confederation (CTM), announced an unprecedented cancellation of this year's May Day march. Velazquez said organizational costs were too high given the economic crisis in Mexico. But Velazquez, at a meeting of the Congress of Labor, was quoted by the Mexico City daily La Jornada as saying, "the rank and file could go beyond our control and that could lead to a serious situation."

Instead, the Congress of Labor, which groups unions affiliated with the ruling Institutional Revolutionary Party, will place advertisements supporting the government's economic policy and possibly hold a rally in a small auditorium. However, unions unaffiliated with the CTM, along with the capitalist opposition Party of the Democratic Revolution, are announcing their own plans to organize a May Day march.

Venezuelan banks go belly-up
Following the collapse of Venezuela's second largest bank, Banco Latino, last January, a string of 16 large banks have failed. The fall of these institutions was the most dramatic crisis to hit a banking system this century, taking more than half of all deposits and assets in the banking sector.

Hundreds of thousands of accounts were frozen and 15 percent of Venezuela's gross national product was spent to refund depositors and to bail out the banks. Venezuela was once touted as the richest country in Latin America due to its massive oil wealth.

EU and Ottawa reach fish deal
After weeks of negotiations between the Canadian government and European Union officials, an agreement has been reached on apportioning the turbot catch outside Canada's 200-mile fishing limit. The Canadian fleet can now take in 10,000 tons, 7,000 in its waters and 3,000 outside, while the European-owned trawlers will be allowed to catch 5,013 tons above the 6,000 caught so far in the disputed waters. Ottawa also agreed to drop charges against the Spanish captain whom it had seized earlier and refund the bond and bail posted by Madrid, along with proceeds from the seized catch.

New enforcement laws were agreed to, giving the Canadian government new powers to monitor fishing off Newfoundland. Monitors will be on every vessel in disputed waters. Spain and Portugal are the only EU member countries whose fleets fish in this region.

Fujimori wins Peru election
Self-proclaimed authoritarian and Peruvian president Alberto Fujimori retained his post with 65 percent of the vote in his second bid for the presidency. The closest candidate was Javier Perez de Cuellar, former United Nations secretary general, who received 22 percent of the vote.

Railing against political parties, vowing to gain "total control of inflation," and continuing aggressive privatization of state enterprises - including Petroperu, the state-owned oil and gas company - Fujimori said he plans to make Peru "a leader in Latin America in a very short time." The Peruvian president wants to renegotiate the $6 billion debt with international creditors. He promises "a real democracy that depends on social justice-that seeks efficiency. And that's an efficiency without political parties."

Ukraine is not investor-friendly
Woes continue for would-be investors in the Commonwealth of Independent States (CIS), as they compete with state-owned companies for domination of the Russian and CIS markets. Cargill, the agribusiness giant, complains it signed a $10 million seed growing contract with the Ukrainian government - only to find out the contract had to be approved by the state-run Ukrainian Seedgrowers' association, Cargill's main competitor in the country.

Capitalists fear unpredictable and fluctuating CIS policy changes, which undermine their ability to take advantage of investment opportunities. Investors also complain the tax system does not defend their profits.

Argentina workers fight attack
When Continental Fueguina bosses recently announced the closing of their domestic electronics plant in Ushuaia, Argentina, 200 metalworkers occupied the plant in protest. Cops immediately went in and forced the workers out with tear gas, injuring 14 workers. Following the police assault, the workers surrounded the governor's mansion and the police headquarters and pelted both buildings with rocks.

On April 12, worker Victor Choque was fatally shot in the head and at least 25 were injured when cops attempted to bust up another demonstration. Jose Estabillo, governor of Tierra del Fuego province, at the southern tip of South America, asked Buenos Aires to send in 200 cops for reinforcement. Estabillo's spokesman said the death of the worker resulted from a head injury, claiming, "No one ordered the police to use lead bullets."

Winnie Mandela resigns post
After being fired for a second time, Winnie Mandela resigned her post as deputy minister of arts, culture, science, and technology April 17, the day before her dismissal was to take effect. She had earlier gone to court to contest attempts by South African president Nelson Mandela to have her discharged. She told reporters she was stepping down to pursue "more pressing" interests, and indicated she would drop her legal case.

Winnie Mandela is presently under investigation for corruption and influence-peddling. She was removed from her cabinet post in the South African government following insubordination. In announcing her dismissal South African president Nelson Mandela said, "I sincerely hope this action will help her to reflect and improve on her conduct in positions of leadership."

DAMON TINNON  
 
 
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