The Perks of Pemex

I’ve written before on some of the problems of Pemex (see, for instance, “Not everything is perfect, perfect, perfect“).  A recent WSJ article about the company’s attempts to renegotiate terms with the union help to explain some of these issues.

Under the current contract, union workers:

1. Retire at age 55 with “at least 80% of the average salary during the past year worked.”  Pretty sweet deal.

2.  Get 30 vacation days annually and those days aren’t merely a paid holiday; they receive three times their pay for those vacation days! (if they have worked at Pemex for at least 10 years)

3. Receive low interest rate mortgages if they want to purchase a house

4.  Enjoy extensive health insurance benefits, including “cosmetic surgery for employees and their relatives.”  Their relatives too?  Wow, was there any actual contract negotiation going on by Pemex management before now? Did they even try?