Daily Report
Mexico: 'energy reform' promises privatization —and fracking
On Aug. 12 Mexican president Enrique Peña Nieto formally announced his plan for transforming the country's nationalized energy sector by opening up the giant oil company Petróleos Mexicanos (Pemex) to shared risk contracts with Mexican and foreign private companies and by allowing private companies to generate electricity for the Federal Energy Commission (CFE). Mexico is currently the world's largest oil producer, with about 2.5 million barrels pumped each day, but Peña Nieto said his "energy reform" would raise oil production to 3 million barrels a day in 2018 and 3.5 million 2025 and natural gas production from 1.7 million cubic feet now to 8 million cubic feet in 2015. The reform, which would require changes to articles 27 and 28 of the Constitution, is supported by the center-right National Action Party (PAN) and Peña's centrist Institutional Revolutionary Party (PRI); the votes from the two parties should be enough to get the legislation through the Congress.
Honduras: US-Korean maquila accused of CAFTA labor violations
Some 30 inspectors from the Honduran Labor Ministry visited the Kyungshin-Lear Honduras Electrical Distribution Systems auto parts assembly plant in a suburb of the northern city of San Pedro Sula on Aug. 13 after local media reported that some employees had to wear diapers at work because of restrictions on their bathroom breaks. Workers for the company, an affiliate of the Michigan-based Lear Corporation and Korea's Kyungshin Corp, say there are many other labor violations, such as forcing pregnant women to stand while doing assembly work. According to an Aug. 12 press release from the AFL-CIO, the main US labor federation, management has fired 26 workers so far this year for trying to form a union at the maquildora (assembly plant with tax exemptions producing for export).
Colombia: Coke bottler fires outsourced workers
Using a subterfuge to remove its direct employees from the plant, on July 27 the Coca-Cola bottling company in Medellín in Colombia's northwestern Antioquia department laid off 132 workers contracted through the EFICACIA outsourcing company, according to the National Union of Food Industry Workers (Sinaltrainal), which represents bottling workers, including 18 of the laid-off employees. Management had notified the regular employees the day before that they would be going to another location for training on safety. Once the direct workers were out of the way, EFICACIA's director told the contracted workers that the plant was switching to another contractor, SEDIAL, and that they were all laid off. Sinaltrainal said the Coca-Cola bottlers had used a similar trick to fire a group of contract workers in 2001. (Sinaltrainal, July 28; Adital, Brazil, Aug. 9)
Haiti: lawyer for homeless threatened with arrest
Haitian human rights attorney Patrice Florvilus and his supporters announced on Aug. 16 that he had been asked to appear at the government prosecutor's office in Port-au-Prince on Aug. 19 in connection with a complaint from Reynold Georges, a lawyer for former "president for life" Jean-Claude ("Baby Doc") Duvalier (1971-1986). Florvilus heads the legal aid organization Defenders of the Oppressed (DOP), which was formed to help people left homeless by the January 2010 earthquake that devastated much of southern Haiti. The complaint appears to be in retaliation for a complaint the DOP filed against agents of the national police suspected of having murdered Meris Civil, a porter they arrested on Apr. 15 at the Acra displaced persons' camp in the Delmas 33 section of the Port-au-Prince metropolitan area. According to Florvilus, fires were set on April 13 and April 15 at the camp, which occupies property claimed by Duvalier.
Chile: investors sue Barrick over Pascua Lama mine
The unfinished Pascua Lama gold and silver mine high in the Andes on the Chilean-Argentine border continues to bring problems for Toronto-based Barrick Gold Corp. The multinational has announced a loss of $8.56 billion for the second quarter of this year, largely because of a $5.1 billion write-down of the mine's value. The $8.5 billion project is stalled because of environmental concerns and legal actions in Chile. Suspension of construction at the mine coincided with a record 23% drop in international gold prices from April through June.
Argentina: Menem faces trial for factory explosion
On Aug. 13 Argentine federal judge Carlos Ochoa reopened a criminal case charging former president Carlos Saúl Menem (1989-1999) with responsibility in the Nov. 3, 1995 explosion of a military arms factory in Río Tercero in the central province of Córdoba. Prosecutors and Río Tercero residents have long held that the daylong series of explosions was set off deliberately to destroy evidence that the Menem government was selling arms illegally to Ecuador and Croatia, but the case was shut down by federal judges in 2008. It has been reopened following Menem's conviction on March 8 this year of involvement in the arms smuggling. Seven people were killed in the explosions, which also left 300 people injured and destroyed a number of private homes. Even If convicted, the 83-year-old Menem will probably not face prison time; he currently enjoys immunity as a senator for La Rioja province. (Página 12, Argentina, Aug. 13; Clarín, Argentina, Aug. 14)
Peru: high court rules for indigenous rights
Peru's Supreme Court ruled Aug. 16 that decrees on application of the Prior Consultation Law recently issued by the Energy and Mines Ministry are unconstitutional. The legal challenge was brought by the nongovernmental Legal Defense Institute (IDL), which argued that the Ministry's guidelines called for "informational workshops" rather than a decision-making process. The high court agreed that the guidelines failed to conform with the International Labor Organization's Convention 169, which outlines standards for the rights of indigenous peoples. Peru ratified Convention 169 in 1994. The guidelines, principally concerning oil and mineral development, are voided by the ruling. (Gestión via No a la Mina, Aug. 17; La Republica, Aug. 16)
India: tribal people expel mining company
India's Dongria Kondh tribe have overwhelmingly rejected plans by British mining giant Vedanta Resources for an open-pit bauxite mine on their sacred lands, in an unprecedented triumph for indigenous rights on the subcontinent. Twelve Dongria villages unanimously voted against Vedanta's mine during consultations ordered by India's Supreme Court in April. The court based its ruling on the Dongria people's religious, cultural and social rights. The mine would destroy the forests and disrupt the rivers in the Niyamgiri Hills of Orissa state, which are central to the livelihood and identity of the 8,000-strong tribe. Advocates charged the mine would spell the end of the Dongria as a self-sufficient people.

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