If I had to posit a guess, I would say that Section 22 has over-reached, like the GOP has in the States. There will be blowback. People are just basically pissed off by the whole thing.
The traveling vendors have taken advantage of the situation and compounded the logjam in El Centro. The merchants to the south of the zocalo are a very tough, no-nonsense group. To the north, it is a more genteel crowd, but no matter who or what, businesses need supplies and customers.
Cué has made offers and they have been rejected. I am sure negotiations are taking place.
However, some of the teacher's demands are the equivalent of ending poverty and corruption. Oaxaca is the poorest state in Mexico. If ending poverty were even possible, not teaching children in school, should not be a bargaining chip, because it will take years to solve those sorts of problems. No, this a power grab and we shall just have to see how it plays out.
I will let the current pictures speak for themselves.
Tents around the gazebo.

Impassable paths at the northwest corner of the zocalo.

Comida set up in front of the entrance to the cathedral... looks pretty good, eh?

One of the main entrances to the zocalo.

Heading north from Benito Juarez market into the zocalo.

The Governor's Palace blocked off.

Heading up Garcia Vigil.

As I was leaving down, the Port-a-Johns truck sped by heading into town.

Life goes on....

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