MEXICO, April 15, 2010. - The negotiations between Grupo Modelo and the employees on strike from the plant of Tuxtepec, Oaxaca remain stuck and are putting at risk the economy of the region, said Andres Hervis Mayoral, leader of the Confederation of Mexican Workers (CTM) in that region.

In an interview with El Semanario Agencia (ESA), the representative of the employees pointed out that despite GModelo manifested that they were open to dialogue this statement has remained in words and it has not been translated into actions. “Last week, between Thursday and Friday we agreed that we will meet on Monday and so far there is nothing settled”.

Hervis assured that for Tuxtepec, Oaxaca the beer plant means almost everything because since the company arrived the conditions of the region improved drastically. “Modelo is the strongest company in the region and the second biggest in the state just after Pemex refinery. That is why we are all very worried” he added.

He also added that the social security of the area is at stake (IMSS) “without tax payment, the social security is without capital and if it was already bad, it is getting worse before this situation”.

The inconformity of the employees is due to the dismissal of 450 people last January, “After that, the staff was reduced to 1,100 employees whom are now in strike” added Mr. Hervis.

He finally added that if the company an the Union reach an agreement, they most make a commitment so that no reprisals are taken against the employees “An agreement must be signed so that no workers is fired for this”.

Jennifer Shelley, communication manager at Grupo Modelo, told yesterdays to El Semanario ESA that if negotiations get more complicated with the workers on strike at Oaxaca, the company might consider closing operations definitively in this subsidiary which has an average installed capacity of 1.3 million hectoliters pet month. (El Semanario Agencia ESA)