Thursday, October 15, 2009

Odds and Ends from the LyFC

Mexico's Secretary of Social Development, Ernesto Cordero, says that the 42 billion pesos that annually went to LyFC will be diverted into poverty programs, particularly in the border region (he was speaking in Tijuana). That's good policy, and it could be good politics, but I expect the government will need to market that a lot more aggressively for it to have any sort of impact on public opinion.

Yesterday, the government (despite widespread confusion) began handing out the severance packages for LyFC employees, and held out the fig leaf of being rehired down the line.

Also, this may well be standard practice at electric companies around the world, but I was surprised to find out that SME members received free electricity. The freebie, which has come to an end with the disappearance of the business, provided up to about $700 of free electricity a year to each of the 66,000 employees of LyFC, which could have cost the company up to $46 million annually. Unfortunately, the link provides no information on what it actually did cost the LyFC.

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