Quick move to offer generous indemnities to workers

Finance Secretary Agustín Carstens and Labor Secretary Javier Lozano announced that the government would offer redundant LFC workers up to Ps. 20 billion in indemnities, about 25% more than the law requires. (LFC’s annual deficit, which is covered by the government, is more than Ps. 40 billion.) The average worker would get a payment equal to 2-1/2 years’ salary and benefits. Workers have one month to decide if they will accept the government’s offer. Carstens estimated that about 10,000 of LFC’s 43,000 active workers could be re-contracted to work at the new company. The 20,000 retirees will continue to receive their current pensions. (Reforma 10/12)

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