Tuesday, April 29, 2025

Pemex asks senior staff for voluntary 25% pay cut

Mexico’s state oil company is asking senior staff to take a voluntary 25% pay cut due to the effects of the coronavirus on global oil prices, which have tanked to below break-even levels.

In an April 24 email to upper management, Pemex asked deputy directors, managers and administrators to sign on to the salary reduction which would go into effect from now until December.

Those asked to agree to the reduction in salary typically make upwards of 100,000 pesos or US $4,000 per month. The email’s language asks them to affirm they are signing on to the salary reduction “voluntarily, without any fraud, pressure or coercion of any kind.” 

Pemex is also cutting staff on its Gulf of Mexico oil rigs to reduce their risk of exposure to the coronavirus.

The embattled oil company is over US $105 billion in debt and recently saw its credit rating downgraded to junk status by both Fitch Ratings and Moody’s Investors Service, a move likely to trigger the sell-off of billions of dollars in bonds by investors mandated to hold assets of investment quality.

The salary reduction request comes in accordance with Mexican President López Obrador’s April 23 mandate that public sector employees agree to “joining and contributing to the austerity program to rescue Mexico’s sovereignty.” 

The president is also shuttering 10 government departments, instilling a hiring freeze and eliminating Christmas bonuses for federal employees in order to help the country’s economy rebound from the coronavirus-induced slump.

Source: El Financiero (sp)

Have something to say? Paid Subscribers get all access to make & read comments.
Scene from Jalisco Ballet's Gato con Botas, Puss in Boots dances with a woman

What’s on in Guadalajara and around Lake Chapala in May?

0
Beer, tequila, ballets and Jedi Knights all await visitors to Jalisco in May — what will you discover?
Travelers to Baja California Sur are advised to exercise increased caution, avoid crowds, monitor local media for official updates and follow instructions from local authorities.

US, Canada issue security alert for Los Cabos and La Paz, BCS

4
The alert comes after multiple shootings and clashes between civilians and police were reported in the area surrounding Los Cabos last week.
Earthquake alert drill in Mexico

How to prepare for Tuesday’s earthquake alert drill 

2
The earthquake drill, set for 11:30 a.m. tomorrow, will test Mexico's alert system and give residents an opportunity to practice potentially life-saving actions in the event of a disaster.