There are 2 power companies in Mexico: luz y fuerza (light & power) for central mexico near the capital city and electricita (electricity) for the rest of Mexico. These are supposed to be mostly privately run companies, and businesses and homes pay for electrical use. But, the government subsidizes these companies bc many poor mexicans cannot afford even basic electricity. In addition, many mexicans have figured out how to "steal" electricity by illegally connecting to hanging powerlines and the companies/ government rarely deal with this situation.
As a result of overworked transformers, a monopoly on service, and government subsidies, it is common for transformers and breakers to burst into flames, stop working, get turned off, etc., and for electrical lines to be stolen, broken, moved, or disconnected at whim.
All of these things lead to the lack of reliable electricity I mentioned in yesterday's blog.
Turns out that the largest and strongest union in Mexico is the Light & Power company that serves central mexico, including the capital city. They have 60,000 members, all of whom have to pay nearly $1,000 USD to join the union and then hundreds of (US) dollars each month to maintain their membership. Only those who have already joined the union can get a job with that company. The avg. worker in this company makes 3 to 4 times what the avg. worker in mexico is paid, and they get a sizable retirement also (very rare in Mexico). They do not have to provide reliable or efficient or even adequate service in return for their amazing salaries.
The current president made a radical move this week to have the federal government "consolidate" the 2 national power companies into 1 company - the company that currently serves most of mexico but not the capital area. In effect, this put all 60,000 light and power employees in the capital area out of business and left central mexico without any electrical service.
The large union is striking and is very very mad.
So far, we still have power bc the strikers have not yet damaged the electrical grid (they probably won't bc they still want power in their own homes), but if any unexpected transformers blow or meters break or lines fall down, they will not be serviced for weeks.
Mexicans are super confused about what's happening. They want a better power company, but they're not sure how a corrupt government is going to take over a corrupt utility and somehow improve the situation. The mexican government is trying to run this like the U.S. government ran the Bank Bailout or the GM takeover last year, but Mexicans are not convinced that their government can handle the situation. We'll have to wait and see
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