Telmex and Union Agrees on Retirement Benefits for Workers
With effect from January 2023, new employees of Telmex will be able to enjoy more retirement benefits; the new agreement will apply to the employees who have reached 35 years of service and are at least 65 years old.
HIGHLIGHTS:
- Telmex signed an agreement with the union workers on retirement benefits.
- Telmex offers a wide range of communication services, including data transmission.
- The new agreement offers retirement benefits with the inclusion of certain additional benefits.
- The exception under the new agreement for early retirement before turning 65 years.
Retirement Benefits Agreement accepted by Telmex management and Union workers
Telmex, a Mexican telecommunications company, and a subsidiary of América Móvil have signed an agreement with the union workers on retirement benefits beginning in January 2023 for Telmex’s employees.
Telmex offers a wide range of communication services, including data transmission, video internet access, and integrated telecommunications solutions for multinational customers.
Telmex USA, which has signed an agreement with union workers, provides telecom and text solutions to the world’s leading corporations, which have businesses across America.
Under the new agreement, the retirement benefits for new employees will be reduced to 60% of their last drawn salary, with the inclusion of certain additional benefits. This agreement will be applied to those employees who have reached to 35 years of service and are at least 65 years old.
The previous agreement with workers permitted a retirement only after 35 years of service without an age requirement. The only exception under the new agreement for early retirement before turning 65 years old is for employees who have turned 60 and have 37 or more years of service with Telmex.
The new agreement also offers an optional stock plan for employees, allowing both active and retired employees of Telmex to convert a portion of their pension liability into shares of Telmex’s capital stock.
Under the stock option plan, employees will receive the shares of Telmex with the same rights as the company’s current shareholders. Additionally, Telmex will consolidate its existing series of shares into a single series composed of ordinary and full voting rights shares.
