Keep Us Strong WikiLeaks logo

Currently released so far... 143912 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
AORC AS AF AM AJ ASEC AU AMGT APER ACOA ASEAN AG AFFAIRS AR AFIN ABUD AO AEMR ADANA AMED AADP AINF ARF ADB ACS AE AID AL AC AGR ABLD AMCHAMS AECL AINT AND ASIG AUC APECO AFGHANISTAN AY ARABL ACAO ANET AFSN AZ AFLU ALOW ASSK AFSI ACABQ AMB APEC AIDS AA ATRN AMTC AVIATION AESC ASSEMBLY ADPM ASECKFRDCVISKIRFPHUMSMIGEG AGOA ASUP AFPREL ARNOLD ADCO AN ACOTA AODE AROC AMCHAM AT ACKM ASCH AORCUNGA AVIANFLU AVIAN AIT ASECPHUM ATRA AGENDA AIN AFINM APCS AGENGA ABDALLAH ALOWAR AFL AMBASSADOR ARSO AGMT ASPA AOREC AGAO ARR AOMS ASC ALIREZA AORD AORG ASECVE ABER ARABBL ADM AMER ALVAREZ AORCO ARM APERTH AINR AGRI ALZUGUREN ANGEL ACDA AEMED ARC AMGMT AEMRASECCASCKFLOMARRPRELPINRAMGTJMXL ASECAFINGMGRIZOREPTU ABMC AIAG ALJAZEERA ASR ASECARP ALAMI APRM ASECM AMPR AEGR AUSTRALIAGROUP ASE AMGTHA ARNOLDFREDERICK AIDAC AOPC ANTITERRORISM ASEG AMIA ASEX AEMRBC AFOR ABT AMERICA AGENCIES AGS ADRC ASJA AEAID ANARCHISTS AME AEC ALNEA AMGE AMEDCASCKFLO AK ANTONIO ASO AFINIZ ASEDC AOWC ACCOUNT ACTION AMG AFPK AOCR AMEDI AGIT ASOC ACOAAMGT AMLB AZE AORCYM AORL AGRICULTURE ACEC AGUILAR ASCC AFSA ASES ADIP ASED ASCE ASFC ASECTH AFGHAN ANTXON APRC AFAF AFARI ASECEFINKCRMKPAOPTERKHLSAEMRNS AX ALAB ASECAF ASA ASECAFIN ASIC AFZAL AMGTATK ALBE AMT AORCEUNPREFPRELSMIGBN AGUIRRE AAA ABLG ARCH AGRIC AIHRC ADEL AMEX ALI AQ ATFN AORCD ARAS AINFCY AFDB ACBAQ AFDIN AOPR AREP ALEXANDER ALANAZI ABDULRAHMEN ABDULHADI ATRD AEIR AOIC ABLDG AFR ASEK AER ALOUNI AMCT AVERY ASECCASC ARG APR AMAT AEMRS AFU ATPDEA ALL ASECE ANDREW
EAIR ECON ETRD EAGR EAID EFIN ETTC ENRG EMIN ECPS EG EPET EINV ELAB EU ECONOMICS EC EZ EUN EN ECIN EWWT EXTERNAL ENIV ES ESA ELN EFIS EIND EPA ELTN EXIM ET EINT EI ER EAIDAF ETRO ETRDECONWTOCS ECTRD EUR ECOWAS ECUN EBRD ECONOMIC ENGR ECONOMY EFND ELECTIONS EPECO EUMEM ETMIN EXBS EAIRECONRP ERTD EAP ERGR EUREM EFI EIB ENGY ELNTECON EAIDXMXAXBXFFR ECOSOC EEB EINF ETRN ENGRD ESTH ENRC EXPORT EK ENRGMO ECO EGAD EXIMOPIC ETRDPGOV EURM ETRA ENERG ECLAC EINO ENVIRONMENT EFIC ECIP ETRDAORC ENRD EMED EIAR ECPN ELAP ETCC EAC ENEG ESCAP EWWC ELTD ELA EIVN ELF ETR EFTA EMAIL EL EMS EID ELNT ECPSN ERIN ETT EETC ELAN ECHEVARRIA EPWR EVIN ENVR ENRGJM ELBR EUC EARG EAPC EICN EEC EREL EAIS ELBA EPETUN EWWY ETRDGK EV EDU EFN EVN EAIDETRD ENRGTRGYETRDBEXPBTIOSZ ETEX ESCI EAIDHO EENV ETRC ESOC EINDQTRD EINVA EFLU EGEN ECE EAGRBN EON EFINECONCS EIAD ECPC ENV ETDR EAGER ETRDKIPR EWT EDEV ECCP ECCT EARI EINVECON ED ETRDEC EMINETRD EADM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID ETAD ECOM ECONETRDEAGRJA EMINECINECONSENVTBIONS ESSO ETRG ELAM ECA EENG EITC ENG ERA EPSC ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EIPR ELABPGOVBN EURFOR ETRAD EUE EISNLN ECONETRDBESPAR ELAINE EGOVSY EAUD EAGRECONEINVPGOVBN EINVETRD EPIN ECONENRG EDRC ESENV EB ENER ELTNSNAR EURN ECONPGOVBN ETTF ENVT EPIT ESOCI EFINOECD ERD EDUC EUM ETEL EUEAID ENRGY ETD EAGRE EAR EAIDMG EE EET ETER ERICKSON EIAID EX EAG EBEXP ESTN EAIDAORC EING EGOV EEOC EAGRRP EVENTS ENRGKNNPMNUCPARMPRELNPTIAEAJMXL ETRDEMIN EPETEIND EAIDRW ENVI ETRDEINVECINPGOVCS EPEC EDUARDO EGAR EPCS EPRT EAIDPHUMPRELUG EPTED ETRB EPETPGOV ECONQH EAIDS EFINECONEAIDUNGAGM EAIDAR EAGRBTIOBEXPETRDBN ESF EINR ELABPHUMSMIGKCRMBN EIDN ETRK ESTRADA EXEC EAIO EGHG ECN EDA ECOS EPREL EINVKSCA ENNP ELABV ETA EWWTPRELPGOVMASSMARRBN EUCOM EAIDASEC ENR END EP ERNG ESPS EITI EINTECPS EAVI ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID ELTRN EADI ELDIN ELND ECRM EINVEFIN EAOD EFINTS EINDIR ENRGKNNP ETRDEIQ ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD EAIT ECONEINVEFINPGOVIZ EWWI ENERGY ELB EINDETRD EMI ECONEAIR ECONEFIN EHUM EFNI EOXC EISNAR ETRDEINVTINTCS EIN EFIM EMW ETIO ETRDGR EMN EXO EATO EWTR ELIN EAGREAIDPGOVPRELBN EINVETC ETTD EIQ ECONCS EPPD ESS EUEAGR ENRGIZ EISL EUNJ EIDE ENRGSD ELAD ESPINOSA ELEC EAIG ESLCO ENTG ETRDECD EINVECONSENVCSJA EEPET EUNCH ECINECONCS
KPKO KIPR KWBG KPAL KDEM KTFN KNNP KGIC KTIA KCRM KDRG KWMN KJUS KIDE KSUM KTIP KFRD KMCA KMDR KCIP KTDB KPAO KPWR KOMC KU KIRF KCOR KHLS KISL KSCA KGHG KS KSTH KSEP KE KPAI KWAC KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KPRP KVPR KAWC KUNR KZ KPLS KN KSTC KMFO KID KNAR KCFE KRIM KFLO KCSA KG KFSC KSCI KFLU KMIG KRVC KV KVRP KMPI KNEI KAPO KOLY KGIT KSAF KIRC KNSD KBIO KHIV KHDP KBTR KHUM KSAC KACT KRAD KPRV KTEX KPIR KDMR KMPF KPFO KICA KWMM KICC KR KCOM KAID KINR KBCT KOCI KCRS KTER KSPR KDP KFIN KCMR KMOC KUWAIT KIPRZ KSEO KLIG KWIR KISM KLEG KTBD KCUM KMSG KMWN KREL KPREL KAWK KIMT KCSY KESS KWPA KNPT KTBT KCROM KPOW KFTN KPKP KICR KGHA KOMS KJUST KREC KOC KFPC KGLB KMRS KTFIN KCRCM KWNM KHGH KRFD KY KGCC KFEM KVIR KRCM KEMR KIIP KPOA KREF KJRE KRKO KOGL KSCS KGOV KCRIM KEM KCUL KRIF KCEM KITA KCRN KCIS KSEAO KWMEN KEANE KNNC KNAP KEDEM KNEP KHPD KPSC KIRP KUNC KALM KCCP KDEN KSEC KAYLA KIMMITT KO KNUC KSIA KLFU KLAB KTDD KIRCOEXC KECF KIPRETRDKCRM KNDP KIRCHOFF KJAN KFRDSOCIRO KWMNSMIG KEAI KKPO KPOL KRD KWMNPREL KATRINA KBWG KW KPPD KTIAEUN KDHS KRV KBTS KWCI KICT KPALAOIS KPMI KWN KTDM KWM KLHS KLBO KDEMK KT KIDS KWWW KLIP KPRM KSKN KTTB KTRD KNPP KOR KGKG KNN KTIAIC KSRE KDRL KVCORR KDEMGT KOMO KSTCC KMAC KSOC KMCC KCHG KSEPCVIS KGIV KPO KSEI KSTCPL KSI KRMS KFLOA KIND KPPAO KCM KRFR KICCPUR KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KFAM KWWMN KENV KGH KPOP KFCE KNAO KTIAPARM KWMNKDEM KDRM KNNNP KEVIN KEMPI KWIM KGCN KUM KMGT KKOR KSMT KISLSCUL KNRV KPRO KOMCSG KLPM KDTB KFGM KCRP KAUST KNNPPARM KUNH KWAWC KSPA KTSC KUS KSOCI KCMA KTFR KPAOPREL KNNPCH KWGB KSTT KNUP KPGOV KUK KMNP KPAS KHMN KPAD KSTS KCORR KI KLSO KWNN KNP KPTD KESO KMPP KEMS KPAONZ KPOV KTLA KPAOKMDRKE KNMP KWMNCI KWUN KRDP KWKN KPAOY KEIM KGICKS KIPT KREISLER KTAO KJU KLTN KWMNPHUMPRELKPAOZW KEN KQ KWPR KSCT KGHGHIV KEDU KRCIM KFIU KWIC KNNO KILS KTIALG KNNA KMCAJO KINP KRM KLFLO KPA KOMCCO KKIV KHSA KDM KRCS KWBGSY KISLAO KNPPIS KNNPMNUC KCRI KX KWWT KPAM KVRC KERG KK KSUMPHUM KACP KSLG KIF KIVP KHOURY KNPR KUNRAORC KCOG KCFC KWMJN KFTFN KTFM KPDD KMPIO KCERS KDUM KDEMAF KMEPI KHSL KEPREL KAWX KIRL KNNR KOMH KMPT KISLPINR KADM KPER KTPN KSCAECON KA KJUSTH KPIN KDEV KCSI KNRG KAKA KFRP KTSD KINL KJUSKUNR KQM KQRDQ KWBC KMRD KVBL KOM KMPL KEDM KFLD KPRD KRGY KNNF KPROG KIFR KPOKO KM KWMNCS KAWS KLAP KPAK KHIB KOEM KDDG KCGC
PGOV PREL PK PTER PINR PO PHUM PARM PREF PINF PRL PM PINS PROP PALESTINIAN PE PBTS PNAT PHSA PL PA PSEPC POSTS POLITICS POLICY POL PU PAHO PHUMPGOV PGOG PARALYMPIC PGOC PNR PREFA PMIL POLITICAL PROV PRUM PBIO PAK POV POLG PAR POLM PHUMPREL PKO PUNE PROG PEL PROPERTY PKAO PRE PSOE PHAS PNUM PGOVE PY PIRF PRES POWELL PP PREM PCON PGOVPTER PGOVPREL PODC PTBS PTEL PGOVTI PHSAPREL PD PG PRC PVOV PLO PRELL PEPFAR PREK PEREZ PINT POLI PPOL PARTIES PT PRELUN PH PENA PIN PGPV PKST PROTESTS PHSAK PRM PROLIFERATION PGOVBL PAS PUM PMIG PGIC PTERPGOV PSHA PHM PHARM PRELHA PELOSI PGOVKCMABN PQM PETER PJUS PKK POUS PTE PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PERM PRELGOV PAO PNIR PARMP PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PHYTRP PHUML PFOV PDEM PUOS PN PRESIDENT PERURENA PRIVATIZATION PHUH PIF POG PERL PKPA PREI PTERKU PSEC PRELKSUMXABN PETROL PRIL POLUN PPD PRELUNSC PREZ PCUL PREO PGOVZI POLMIL PERSONS PREFL PASS PV PETERS PING PQL PETR PARMS PNUC PS PARLIAMENT PINSCE PROTECTION PLAB PGV PBS PGOVENRGCVISMASSEAIDOPRCEWWTBN PKNP PSOCI PSI PTERM PLUM PF PVIP PARP PHUMQHA PRELNP PHIM PRELBR PUBLIC PHUMKPAL PHAM PUAS PBOV PRELTBIOBA PGOVU PHUMPINS PICES PGOVENRG PRELKPKO PHU PHUMKCRS POGV PATTY PSOC PRELSP PREC PSO PAIGH PKPO PARK PRELPLS PRELPK PHUS PPREL PTERPREL PROL PDA PRELPGOV PRELAF PAGE PGOVGM PGOVECON PHUMIZNL PMAR PGOVAF PMDL PKBL PARN PARMIR PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PDD PRELKPAO PKMN PRELEZ PHUMPRELPGOV PARTM PGOVEAGRKMCAKNARBN PPEL PGOVPRELPINRBN PGOVSOCI PWBG PGOVEAID PGOVPM PBST PKEAID PRAM PRELEVU PHUMA PGOR PPA PINSO PROVE PRELKPAOIZ PPAO PHUMPRELBN PGVO PHUMPTER PAGR PMIN PBTSEWWT PHUMR PDOV PINO PARAGRAPH PACE PINL PKPAL PTERE PGOVAU PGOF PBTSRU PRGOV PRHUM PCI PGO PRELEUN PAC PRESL PORG PKFK PEPR PRELP PMR PRTER PNG PGOVPHUMKPAO PRELECON PRELNL PINOCHET PAARM PKPAO PFOR PGOVLO PHUMBA POPDC PRELC PHUME PER PHJM POLINT PGOVPZ PGOVKCRM PAUL PHALANAGE PARTY PPEF PECON PEACE PROCESS PPGOV PLN PRELSW PHUMS PRF PEDRO PHUMKDEM PUNR PVPR PATRICK PGOVKMCAPHUMBN PRELA PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PBT PAMQ

Browse by classification

Community resources

courage is contagious

Viewing cable 07MEXICO3993, PETROLEOS MEXICANOS: A VERY, VERY GOOD PLACE TO

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #07MEXICO3993.
Reference ID Created Released Classification Origin
07MEXICO3993 2007-07-27 21:55 2011-08-26 00:00 UNCLASSIFIED Embassy Mexico
VZCZCXRO4765
PP RUEHCD RUEHGD RUEHHM RUEHHO RUEHJO RUEHMC RUEHNG RUEHNL RUEHPOD
RUEHRD RUEHRS RUEHTM
DE RUEHME #3993/01 2082155
ZNR UUUUU ZZH
P 272155Z JUL 07
FM AMEMBASSY MEXICO
TO RUEHC/SECSTATE WASHDC PRIORITY 8183
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF LABOR WASHDC
INFO RUEHXC/ALL US CONSULATES IN MEXICO COLLECTIVE
RUEHXI/LABOR COLLECTIVE
RHMFIUU/CDR USSOUTHCOM MIAMI FL
RUEAHLA/DEPT OF HOMELAND SECURITY
RUEATRS/DEPT OF TREASURY WASHINGTON DC
RUEAHLC/HOMELAND SECURITY CENTER WASHDC
RHEHNSC/NSC WASHDC
UNCLAS SECTION 01 OF 04 MEXICO 003993 
 
SIPDIS 
 
SIPDIS 
 
DEPT FOR DRL/AWH AND ILCSR, WHA/MEX AND PPC, WHA/EPSC, 
EB/IFD/OMA, EB/ESC, USDOL FOR ELAB 
USDOC FOR 4230/ITA/MAC/ONAFTA, USDOC FOR ITS/TD/ENERGY 
DIVISION, TREASURY OF IA, DOE FOR INTERNATIONAL AFFAIRS 
NSA FOR FISK 
 
E.O. 12958: N/A 
TAGS: ELAB ECON ENRG EPET PGOV PINR MX
SUBJECT: PETROLEOS MEXICANOS: A VERY, VERY GOOD PLACE TO 
WORK 
 
REF: (A) 06 MEXICO 5720 (B) 06 MEXICO 6241 
 
1.  SUMMARY: On July 17, Petroleos Mexicanos, Mexico,s 
national petroleum company (Pemex), and the Petroleum Workers 
Union (STPRM) announced an agreement on a new collective 
bargaining contract for 2007-2009.  The current Pemex/STPRM 
contract was set to expire on August 31, 2007.  This was 
reportedly the first time since 1991 that the company and the 
union reached an agreement on a contract without the threat 
of a strike.  The new contract, which gives the workers a 
combined wage and benefits increase of 5.85 percent, was 
hailed by both Pemex and the union as an example of the 
determination by all parties to do what was best for the 
company.  The signing of the new contract prompted many 
observers of Mexico,s labor and petroleum sectors to request 
details of the agreement under what could roughly be 
described as the Mexican equivalent a Freedom of Information 
Act request in the U.S.  Those requesting information on the 
new contract did not receive everything they asked for, but 
what they did get raised eyebrows and legitimate speculation 
as to whether the extremely generous terms given to STPRM 
members was an abuse by the union of Pemex and of the Mexican 
government which is so heavily dependent on oil revenues to 
cover the federal budget.  END SUMMARY 
 
 
PEMEX AND THE UNION AGREE ON A NEW CONTRACT 
------------------------------------------- 
 
2.  This year, reportedly for the first time since 1991, 
Petroleos Mexicanos, Mexico,s national oil company, and 
STPRM (Union of Petroleum Workers of the Mexican Republic), 
the Petroleum Workers Union, reached agreement on a new 
collective bargaining contract without the threat of a 
strike.  The agreement was announced on July 17 and will 
cover the period from 2007-2009.  The current contact, 
negotiated in 2005 was set to expire on August 31, 2007.  The 
negotiations for the new contract took approximately six 
weeks during which Pemex agreed to give union workers a raise 
of 4.25 percent in salary and to pay another 1.6 percent in 
benefits for a total combined increase of 5.85 percent. 
 
3.  Many elements, or clauses, of the 2005 contact were 
carried over verbatim into the new collective bargaining 
agreement. According to Pemex, 90 percent of the increased 
cost of the new contract will be covered by (unspecified) 
savings the company has achieved in its overall operations 
this year.  The new contact was hailed by both Pemex and the 
union as an example of the determination by labor and 
management to do what was best for the company.  The actual 
signing of the agreement received considerable press coverage 
in which numerous newspapers took pains to note that many the 
union leaders present at the event arrived in designer suits, 
with crocodile belts, &Ferragamo8 shoes, large gold watches 
and &Mont Blanc8 pens. 
 
 
QUESTIONS RAISED ABOUT THE PEXEX/STPRM AGREEMENT 
--------------------------------------------- -- 
 
4.  Perhaps because of the extensive press coverage, perhaps 
because of the large role petroleum revenue plays in the 
Mexican governments federal budget (in 2006 income from Pemex 
accounted for over 35 percent of the GOM,s total budget); 
the Pemex/STPRM agreement generated considerable public 
interest.  Shortly after the contract was signed many 
observers of Mexico,s labor and petroleum sectors turned to 
the GOM for details of the agreement. Taking advantage of 
what could roughly be described as the Mexican equivalent of 
a U.S. Freedom of Information Act request, observers of 
Mexico,s labor sector and petroleum industry turned to two 
GOM agencies for the details of the new contract. 
Specifically they requested information from the Federal 
Conciliation and Arbitration Council (somewhat comparable to 
the U.S. National Labor Relations Board) and the Federal 
Institute on Access to Information (IFAI). 
 
 
MEXICO 00003993  002 OF 004 
 
 
5.  The main source of information was the Conciliation and 
Arbitration Council which, among other things, is responsible 
for reviewing and maintaining copies of all formally 
concluded collective bargaining agreements.  The Council's 
publicly available files contain printed copies of contracts 
but, in the absence of an official complaint, nothing on 
their implementation.  For information on the implementation 
of the Pemex/STPRM contract observers turned to IFAI.  IFAI 
requested implementation information from both Pemex and the 
STPRM but neither of them were completely forthcoming. 
Pemex, as a state owned enterprise, was essentially required 
by law to respond to IFAI inquiries.  However, in some 
instances it declined to release information claiming that 
the specific data requested was protected by Federal Labor 
Law under statues governing union autonomy.  Under those same 
statues STPRM successfully obtained a federal court 
injunction which allowed it to refuse IFAI,s request for 
information. 
 
 
PUBLICLY AVAILABLE INFORMATION ON THE PEMEX/STPRM CONTRACT 
--------------------------------------------- ------------- 
 
6.  Despite the reluctance of Pemex and STPRM to provide many 
of the specific details on the implementation of their 
collective bargaining agreement, a considerable among of 
information is publicly available. For example, as of 2006 
Pemex officially had 117,000 employees who were members of 36 
Sections (Locals) throughout Mexico.  One of the items that 
were part the Pemex and union negotiation was the question of 
employee transfers.  Both the STPRM and Pemex acknowledge 
that the company has 16,000 employees whose jobs have 
disappeared because of plant or processing facilities closing 
or because they were previously employed in areas where oil 
production has dropped. 
 
7.  At present these individuals draw full salaries and 
benefits even though they are not actually working.  Pemex is 
not looking to cut these workers, simply to transfer them to 
other facilities or company subsidiaries where workers are 
still needed.  The transfer of these surplus workers was one 
of the items being discussed in the just concluded contract 
negotiations.  It is assumed the union agreed to these 
transfers dictated by business necessity, but neither Pemex 
nor the union has specifically said what the outcome of this 
point of negotiation was. 
 
8.  Another publicly known item concerns the amounts needed 
for and the consequences of, paying out retiree benefits. 
According information released by Mexico,s Energy and 
Treasury Secretariats, Pemex was supposed to invest funds in 
165 special projects (infrastructure improvements) in 2007. 
Of these special projects, 61 have reportedly been put on 
hold because the company used USD 2.269 billion more than 
expected to cover retiree pensions and benefits.  It can be 
argued that the company should have properly budgeted for 
these expenses and perhaps Pemex attempted to do so and 
simply miscalculated.  Nevertheless, although it may have 
been Pemex who was at fault, it is the STPRM who is being 
criticized for taking funds away from badly needed capital 
investments. 
 
 
READ THE FINE PRINT ( THAT IS, READ THE CLAUSES 
--------------------------------------------- -- 
 
9.  The real good, bad and ugly of the details of publicly 
available information about past and present collective 
bargaining contract between STPRM and Pemex can be found by 
reading the clauses of the contracts on file with the Federal 
Conciliation and Arbitration Council.  Clause numbers 32 and 
33 establish important elements of the relationship between 
Pemex and the union while numbers 245 and 246 lay out 
benefits payable by Pemex to either to the union or to STPRM 
workers.  All of the above Clauses are either broad in scope 
or provide generous terms of payment but they pale in 
comparison to Clause number 251. 
 
MEXICO 00003993  003 OF 004 
 
 
 
10.  Clause numbers 32 and 33 allow STPRM to discipline its 
members for real or presumed infractions of labor 
rules/statues without having to consult with Pemex company 
management. Moreover, the two clauses oblige Pemex to carry 
out almost any penalty the union imposes.  For example, if a 
worker decides to leave the union STPRM can force Pemex to 
terminate that person's employment even if the employee is a 
highly skilled worker who has always complied in every way 
with company regulations. Under these two clauses Pemex does 
not have the right to question in any way disciplinary 
decisions taken by STPRM.  Similarly, STPRM can expel a 
worker from the union for a broad range of disciplinary 
reasons and then force Pemex to fire the worker.  Again Pemex 
has no right to ask why the worker was expelled from the 
union and if it does learn why, it has no right to question 
whether the alleged action by the worker merits expulsion 
from the union and dismissal from his/her employment. 
 
11.  In clause 245 of the newly negotiated contract Pemex is 
obliged to withhold union dues from the STPRM members and 
turn the dues over to the union.  The amounts of the dues are 
determined by the union and can be used for whatever purpose 
the union deems appropriate.  Clause 246 obligates Pemex to 
withhold from worker salaries any amount deemed appropriate 
to pay off any loans that the employee may have borrowed from 
the union. 
 
 
THE REAL SWEETHEART DEAL IS IN CLAUSE 251 
----------------------------------------- 
 
12.  Of all the clauses in the Pemex/STPTM contract, the one 
that provides the most generous (and perhaps even lavish) 
benefits to both the union and the workers is clause 251. 
This clause was carried forward almost verbatim from the 2005 
contract. Under this clause Pemex is required to pay the 
union 84 million pesos (approximately USD 7.6 million) to be 
used to hire personnel specifically assigned the task of 
reviewing the overall collective bargaining agreement and 
preparing the union,s position for future contract 
negotiations.    Under the terms of this clause of the 
2005-2007 contract, STPRM hired 83 consultants, 55 general 
advisors, 9 technical assistants, etc., etc. for a total of 
287 persons whose sole function was to help the union 
negotiate a better contract with Pemex.  These 287 persons 
were over and above the regular 68 permanent members of the 
STPRM,s General Executive Committee who are formally charged 
with preparing for and conducting contract negotiations. 
 
13.  Other items in Clause 251 for the length of the contract 
include: 
 
23.4 million pesos annually (about USD 2.15 million) to pay 
for May 1, International Workers Day celebrations; 
 
13.15 million pesos annually (about USD 1.204 million) for 
the annual commemoration of the nationalization of Mexico,s 
petroleum fields and industry; 
 
19.7 million pesos annually (about USD 1.81 million) paid to 
the STPRM,s General Executive Committee to cover business 
travel expenses; 
 
11 million pesos annually (about USD 1 million) to cover 
worker transportation expenses; 
 
3.5 million pesos annually (about USD 321,100) in food 
subsidies; 
 
965,000 pesos annually (about USD 85,871) for company 
baseball caps for each employee; 
 
1.29 million pesos annually (about USD 118,073) for company 
tee shirts for each employee; and finally 
 
In addition to the above items Pemex is required to provide 
 
MEXICO 00003993  004 OF 004 
 
 
office space (in company facilities or rented on the 
commercial market) and pay for the utilities for all 36 STPRM 
Section office throughout Mexico.  Included in the payment of 
these offices is the Pemex,s responsibility to cover all 
salaries and benefits for the 327 permanent union staff that 
provide administrative support for the 68 members of the 
STPRM,s General Executive Committee. 
 
 
EVEN OPPOSITION PARTIES TAKE PAUSE 
---------------------------------- 
 
14. Since the inauguration of National Action Party (PAN) 
government of Mexican President Felipe Calderon,s 
administration, the country,s main opposition party, the 
Party of the Democratic Revolution (PRD) has often taken 
issue with the GOM on a wide range of issues.   However, with 
the recent media coverage of the Pemex/STPRM collective 
bargaining agreement even the PRD has expressed concerns over 
the long term implications of the union/oil company 
contracts.  The lead Senator of the PRD faction in the 
Mexican Senate has expressed his party,s willingness to work 
with the administration to put a halt to excesses in the 
negotiation of Pemex labor contracts. 
 
15.  As the PRD describes itself as a leftist party the 
Senator laid the blame for the hemorrhaging of excessive 
benefits in the new contract on the STPRM leadership and not 
on the workers.  The Senator also blamed Pemex company 
management, not just for the excessive labor contracts but 
also for the lack of transparency in the way Pemex does 
business in bidding out contract to private companies who 
work with the national oil company. Nevertheless, the fact 
that leader in the PRD in the senate was willing to publicly 
express common cause with President Calderon,s government is 
significant sign of how shocked the general Mexican 
population is over the revelations of terms and clauses of 
the Pemex/STPRM contract reported in the national press. 
 
 
COMMENT 
------- 
 
16.  No matter what the press, the national legislature or 
any other sectors of Mexican society may say, at this point 
the Pemex/STPRM collective bargaining agreement is a done 
deal.  Under Mexican law there is almost no way to change the 
terms and clauses of the current negotiated contract until 
its expiration in 2009. If Mexico,s ruling PAN political 
party its main opposition, the PRD, work together it is 
possible that future legislation may force some level 
cutbacks limits to the salaries and benefits that can be 
negotiated between the union and Pemex.  Given how dependent 
the Mexican government,s federal budget is on oil revenues 
from Pemex it would clearly be in the national interest to 
get some level of control over the oil company,s labor and 
administrative costs.  On the other hand, unions in Mexico 
are very unaccustomed to any type of give-backs and it is 
hard to imagine that the STPRM will agree to cuts in salaries 
and benefits with first having resorted to a strike that 
could have serious and unforeseen consequences. Also, as the 
STPRM has historically been closely linked to the 
Institutional Revolutionary Party (PRI), which ruled Mexico 
for most of the past 70 years, the union would probably call 
on its traditional ally to help fight off any efforts to 
force serious give-backs. 
 
 
 
 
Visit Mexico City's Classified Web Site at 
http://www.state.sgov.gov/p/wha/mexicocity and the North American 
 Partnership Blog at http://www.intelink.gov/communities/state/nap / 
GARZA