Pemex agrees salary rises with oil workers union

FILE PHOTO: The Pemex logo is pictured during the 80th anniversary of the expropriation of Mexico's oil industry at the headquarters of state-owned oil giant in Mexico City, Mexico March 16, 2018. REUTERS/Edgard Garrido/File Photo

MEXICO CITY (Reuters) - Mexico’s state oil company Pemex said on Wednesday that it had agreed with the oil workers union to raise salaries and benefits while seeking to manage the heavily indebted company’s delicate financial situation.

“Taking into consideration the project that is rescuing the company that belongs to Mexicans, a 3.37% increase of ordinary salaries and a 1.80% increase of benefits was agreed,” Pemex said in a statement.

Pemex is the world’s most indebted oil company, with $104 billion of financial debt, $66 billion of which is made up of reserves for employee benefits. It has been teetering on the brink of losing its investment grade rating.

The company said both parties had agreed to “harmonize the company’s remain within the austerity framework that distinguishes the current administration”, but gave no further details.

Mexican consumer prices rose 3.95% in the year through June, down from the previous month, the national statistics agency said earlier this month.

Reporting by Stefanie Eschenbacher; Editing by Kenneth Maxwell