Deal Ends Maquiladora Lockout

A medical equipment manufacturer settled a bitter dispute Friday with its Newport Beach-based maquiladora operator, ending a lockout that had put 1,200 Tijuana workers on the street.

But the settlement came only after Alaris Medical of San Diego agreed to pay the plant operator, Cal Pacifico, a lump sum to end the lockout and for its cooperation in setting up independently in Tijuana in August. Sources pegged the amount at more than $1.5 million.

The dispute caught the eye of Baja California’s booming maquiladora industry as an example of how poorly understood Mexican laws can cause disruption. Cal Pacifico shuttered the two Alaris plants on June 11, sending employees home and denying Alaris access to equipment and products.

Alaris, which makes intravenous-infusion pumps and disposable tubing used in hospitals and clinics in 120 countries, said the settlement would be outlined in a special filing in the next few days with the Securities and Exchange Commission.

Except to say his client was “very pleased,” Cal Pacifico attorney Andrew Kaplan of San Diego declined to discuss the case. Alaris Medical shares closed Friday at $3.375, up 37.5 cents on the Nasdaq.

The dispute arose in April when Alaris told Cal Pacifico, a maquiladora operator that has acted as Alaris’ proxy since 1989, that it would vacate the premises and build its own $10-million plant.

Maquiladoras, plants owned by foreign firms seeking cheap labor, make products chiefly for tax-advantaged export to the U.S.

Insisting Alaris owed it money, Cal Pacifico responded by locking Alaris workers out of the plants, which under Mexican law it had the right to do as the nominal employer and lessee of the buildings.

Alaris Chief Executive Bill Mercer said last week that his company provided ample notice of its intent to leave and that the lockout was a tactic to extract more money.