Friday, August 12, 2005

Gearing up for another social security conflict

Yesterday, the social security union in Mexico submitted its formal contract negotiation request and strike petition. This is part of the normal contract negotiation process, but the strike deadline is midnight on October 15.

A key area of negotiation will be the union's contractual pension benefits. The union has suggested that it's willing to consider a reform to its pension system, but is unwilling to accept full privatization or reduction in benefits for current workers.

The social security administration (with the support of other union leaders and business representatives) will try to use last year's reform to the social security law to threaten the union with bankruptcy in order to get a more dramatic pension concession.

posted by Michelle @ 2:32 PM,

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