PEMEX overweight

Imagine a chubby guy in love with hot dogs, hamburgers and pizzas that is fed up with his rashers and determined, he shares his personal diet to lose a few pounds.

Starting today, I’ll drink diet coke only, I’ll sleep eight hours, I'll be 4 hours a day in front of the TV only and I’ll think about only in healthy things.

As the kid in the TV adds, you sure would ask the chubby guy, hey and the hotdogs, the hamburgers and the pizzas, dad?

I thought that when listening on the radio to new named Pemex director Jose Antonio Gonzalez, talking about the savings plan of the under a lot of problems oil company:

"What we are talking about, is not setting staff itself. Certainly it will be part of the process. I do not discard it, but we have not defined it yet, either in what place or in what amount. But we will always work hand to hand with the union and respecting the worker’s rights."

No, wow, I just have only one question, Mr. González: and the hotdogs, the hamburgers and the pizzas, dad?

If the obese Pemex want to lose weight there’s no turning back, you have to cut staff and benefits.

Regarding the overstaffing, Sergio Sarmiento has recently made an excellent comparison between Pemex and Statoil. While the Norwegian company has a sixth part of Pemex workers, in 2014 it sold only 26% less than the Mexican fatty.

Another example: Chevron. The American giant produced a daily average of 3 million barrels in 2014, 25% more than Pemex; and what about its employees? At the end of 2014 Chevron had less than half of our fatty did (47%, in fact).

Due to the oil crisis during 2015 Chevron’s revenue plummeted 35%, and of course, it already has cut 12% of its workforce (7,500 workers). Now it employs only 42% of the employees Pemex has.

Let me tell you this, between January and September 2015, the accumulated income of Pemex has fallen almost 38% compared to 2014 (in dollars) and although it has announced that the goal is to cut just over 10,000 workers, many of these “savings” are only in retirements.

Here comes another big problem of our Mexican fatty: the union benefits of Pemex. I’ll just highlight some beauties. It’s crazy:

a) Vacation Days: From day one and up to 10 years, 21 paid days. After 10 years, 30 days, and of course, I have to mention the vacation bonus: 186%, you and I receive 25%.

b) Yearly bonus: 60 days. For you and me: only 15.

c) Settlement: 5 months 40 days per year worked.

d) Waiver: If the employee has worked for more than 15 years, 40 days per year worked! Really? I cannot believe it...

e) Retirements:

· 25 years or 55 years of age: 80% of salary.

· 30 years or 60 years of ag: 90% of salary.

· 35 years without age limit: 100% of salary.

· All retirees receive medical care, inflation adjustments and yearly bonus of 60 days.

· After dying there are four types of postmortem pensions: starting from 3 years with 100% of salary retirement to lifetime. In addition, 15 years of medical care for dependents.

f) Up to two loans. The first at an annual rate of 1% and of 5% second. Oh and a single aid for remodeling and other items up to $ 125.513.40.

And I am leaving the most incredible fact for last. Each worker is entitled, on average, to receive the equivalent of $300.00 pesos per day of gasoline if they show a commercial invoice of a vehicle. If this provision were to apply to the 135,000 workers of Pemex, the spending would be $40.5 million pesos every day, $14.782 million pesos per year!

Oh, they also receive a daily average of $70.00 pesos as a small help for gas, about $9.5 million pesos per day, or $3.450 million pesos per year!

These are the rashers of Pemex: an excess of workers and their irrational benefits. No private company would survive this way.

Pemex has done it due to the economic boom of oil prices that we have had for decades. The consequence of its fatness was noted in its inefficiency and ineffectiveness to explore and thus sustain or grow its production volume, as all the other oil companies in the world do.

But there is no doubt that, in the lean times you and I we'll have to maintain PEMEX. That is why the Government is already creating its "Fobaproa" (Banking Fund for the Protection of Savings) for Pemex in order to rescue its pension crisis. And who will pay the bill?

José Antonio González is preceded by a reputation for being rational and efficient. We better. There is no other way: In order for Pemex to lose weight it has to leave the hotdogs, the hamburgers and the pizzas. PEMEX must cut its workforce in a minimum of 50 % and it has to use large scissors to cut down its benefits, or not?

In a few words...

"My doctor told me, stop having intimate dinners for four if you are to eat dinner by yourself."

Orson Welles