(Bloomberg) — Unionized workers at billionaire Carlos Slim’s Telmex, a unit of America Movil SAB, are striking after they were unable to reach a deal with the company on wage increases amid rising inflation.
Approximately 28,000 workers across the country went on strike at midday on Thursday, a union representative said. It marked the first time Telmex’s unionized workers have walked out since 1985. Slim took control of Telmex in a 1990 privatization.
The union is asking for a 7.5% wage increase for both its active and retired workers, plus a 2.9% increase in their benefits package, according to a Wednesday night statement. The company is offering a 4.4% increase in wages and 1.1% increase in benefits, the union said, but is offering a smaller increase for the retired workers.
America Movil confirmed the strike and said it was unable to reach a deal that would allow for the company’s “economic viability,” according to a statement. “Telmex guarantees the quality and continuity of all its telecommunication services thanks to its latest generation technology,” it said, adding negotiations are ongoing.
Workers are also asking the company fill 2,000 vacant spots that Telmex said it would fill months ago.
Mexico’s inflation in June accelerated to the fastest pace since early 2001 to 7.99%.
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