Pemex and Oil Workers Union Reach Agreement

Pemex reached a wage increase agreement on Sunday night with the oil workers union and averted a strike. The agreement, signed at a public ceremony by Pemex Director Raul Munoz Leos and Union leader Romero Deschamps, calls for a 5.5 percent salary increase and 1.8 percent increase in fringe benefits, retroactive to August 1st. "The Labor Ministry recognizes the sense of responsibility and patriotism demonstrated by the union in accepting this increase, putting the good of the country ahead of particular interests," Abascal said.

Originally the 80,000-member union had asked for a 15 percent raise while management offered 5.5 percent. The union threatened to strike beginning October 2. It would have been the first Pemex union walk-out since Mexico nationalized its oil industry back in 1938.