This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Mexico Plays Hardball In Jailing Of Union Boss

By E. EDUARDO CASTILLO and MARK STEVENSON

MEXICO CITY (AP) â¿¿ The arrest of Mexico's most powerful union leader echoes the hardball tactics of Mexico's once-imperial presidency while pushing forward an education reform that Enrique Pena Nieto has made a centerpiece of his new administration.

Elba Esther Gordillo, known for flashing her Hermes handbags and heels, stood behind bars Wednesday in a grim prison in eastern Mexico City as a judge read off charges of embezzlement and organized crime. The arrest sidelined a woman who had tried to mobilize teachers to block a schools shake-up designed to end her control over hiring and firing of teachers across the country.

It also sent a message to other union bosses and business magnates: Don't get in the way of Pena Nieto, whose Institutional Revolutionary Party has newly returned to the power it held for seven straight decades, when incoming presidents often crushed those who challenged them.

"This is an old tactic, let's hope that it doesn't just stop there, as it did in the past, when a single case was enough to calm things down and add legitimacy" to presidential power, said Jose Antonio Crespo, an analyst at the Center for Economic Studies. "Let's hope this doesn't stop and that it becomes something more systematic, for which there is a burning need."

Crespo was referring to the business magnates and union bosses who have built fortunes and political power by dominating whole sectors of the economy. Like Gordillo, their resistance could be an obstacle to Pena Nieto's pledges to modernize and open up Mexico's economy.

But the tough message of Tuesday's arrest may have been enough.

Gordillo, whose 1.5 million-member National Union of Education Workers organized protests against Pena Nieto's education reform signed into law this week, was pulled off a plane arriving from San Diego late Tuesday and taken to Mexico City's women's prison.

1 of 5

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,653.09 -227.27 -1.35%
S&P 500 1,943.57 -26.50 -1.35%
NASDAQ 4,394.71 -68.1920 -1.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs