Labor Unrest

• Despite Recovery, oil workers were not seeing wage increases

• Workers went on strike

• This disrupted Mexico's primary means to gain foreign revenue

• Cardenas supported the strike

Mexican Nationalism

• The industry was domintated by British and the U.S.

• This made the strike a nationalist symbol

• Cardenas decided he had to intervene

• He discovered the companies could affort to pay the increases

The Conflict Comes to a Head

• The companies refused to consider an increase

• FDR refused to intervene

• Cardenas decides to nationalize the oil industry

• Mexico paid only $130M of the $450M demanded

The Conflict Ends

• The companies made the transition difficult

• Cardenas formed a state-run company- PEMEX to

• Mexicans overwhelmingly supported this venture

• Eventually, PEMEX was successful and survives

• Conflict ends as FDR wants harmony

The Mexican Revolutionary Party

• Cardenas was more popular than ever

• He dispands the old PNR & forms a new party

• The PRM cemented a relationship between the government & the workers

• This popular era became known as the Cardenismo