Telmex of Mexico provides new employees with a pension plan that is union-friendly

Telmex, the Mexican telecommunications corporation founded by the family of business billionaire Carlos Slim, presented a new offer to union workers on Wednesday, which included enhanced retirement benefits for new hires.

According to a document shared with union employees and accessed by Reuters, new hires will receive a pension equal to one hundred percent of their last net wage upon retirement, based on their job category, after 35 years of service and at age 65.

It was said that this sum would include the pension given by the Telmex contract as well as employee benefits from the Mexican Social Security Institute (IMSS).

The Mexican Telephone Workers Union, or STRM for its Spanish acronym, is likely to submit a counter-proposal, according to a union spokesman, who also noted that the company's overall proposal lacked certain areas that the union wanted to address.

According to a statement made by Telmex, the parties involved, including Mexico's labor minister, have agreed to continue negotiations until September 20.

The union, which represents 60,000 active and retired employees, began a two-day strike on July 21, the first in four decades, after negotiations with Telmex over salary hikes, unfilled job openings, and benefits for new hires broke down.

The strike ended the next day when Telmex, a subsidiary of Slim's America Movil (NYSE:AMX), and the union agreed to form a committee with 20 days to find a resolution.

Telmex's proposal aims to improve perks, including support for new hires purchasing homes through Infonavit, the largest housing finance institution in the state.

The company's proposal did not appear to tackle many previous sticking points, such as the roughly 2,000 open positions.

Telmex wants to enhance its financial resources and invest them in technology and the formation of new enterprises during the next ten years.

The recommendation added, "To make this feasible, we must optimize our resources or reduce our expenses." "We must supply oxygen to the company."