MEXICO · ENERGY
Key Facts
- —The country Mexico, the US southern neighbour, runs its oil industry through the state company Pemex.
- —Why it matters Staff cuts at Pemex touch its finances, its workers and the bond investors who watch its rating.
- —Why now Pemex issued its denial on Thursday 22 October 2026, a day after workers made dismissal letters public.
- —What happened Pemex called mass layoffs and pay-scale cuts false, but said its 2026 staffing is down 0.21%.
- —The numbers The union counts 11 dismissals in Reynosa on 5 October and a worker cut from level 39 to 30.
- —What it means for you US investors and suppliers should expect more Pemex cost-cutting and a court fight over a 5,000-member union.
- —Still open How many jobs went, and whether the Supreme Court will recognise the union.
- —Power Index Mexico ranks 2nd of 14 in The Rio Times Latin America Power Index, with 71.4 points (October 2026 edition).
In Plain English
Pemex is Petróleos Mexicanos, the state-owned oil company that runs much of Mexico’s oil and fuel business. Its large union, the STPRM, holds the main labour contract for its rank-and-file workers.
Trusted staff, called personal de confianza in Spanish, are employees to whom that main contract does not apply, which means fewer protections. A pay level is a grade on Pemex’s salary scale, so a move from level 39 to level 30 means a lower grade and lower pay.
Pemex denies mass layoffs, the Mexican state oil company said in a statement on Thursday 22 October 2026, calling reports of widespread dismissals and cuts to pay scales false. It also confirmed a restructuring that has trimmed its workforce by 0.21% so far this year.
For US readers the dispute matters because Pemex is a state company whose finances are watched by bond investors, and the first dismissals the union reported were in Reynosa, across the border from McAllen, Texas. Pemex said on 15 October that the agency HR Ratings had kept its national rating at the top level and set its global rating at BBB with a stable outlook.
The row went public on Wednesday 21 October, when the business magazine Expansión published dismissal letters shared by the UNTyPP, a union of oil technicians that Pemex does not recognise. On Friday 23 October Expansión reported that the same group has taken its fight for recognition to Mexico’s Supreme Court.
What Pemex Said on Thursday Night
Pemex posted its statement on its press page on Thursday 22 October, saying that versions of mass layoffs and of cuts to pay scales are false. The company, led by Director General Juan Carlos Carpio Fragoso, did not name any outlet or union in the text.
It said it runs continuous performance reviews and an organisational restructuring to remove duplicated functions, duplicated posts and unnecessary levels of hierarchy. In 2026 those steps amount to a 0.21% reduction of the workforce, carried out with severance and benefits, the company said.
The statement gives no headcount, no list of units affected and no savings target, and El Universal put Pemex’s workforce at about 130,000 people. If 0.21% applies to that total it would be about 270 jobs, which is our own arithmetic and not a Pemex figure.
Industry & Energy Magazine said that moving one worker to a lower level is not the same as cutting the general pay scale, so the two claims must be kept apart. Pemex’s statement does not mention individual level changes or the dismissal letters.
What the Union Says Happened
The UNTyPP says 11 workers were dismissed in Reynosa, Tamaulipas, on 5 October, two of them its members, including one with 35 years at Pemex. Those figures come from the union, and Pemex has not confirmed them.
Union official Silvia Ramos told Expansión that Pemex began with selective dismissals and last week moved to lowering pay levels, citing one worker cut from level 39 to level 30, which she said means earning less than half. Expansión found no overall figure for dismissals or level cuts.
The dismissal letters seen by Expansión promise severance within 60 days under Pemex’s rules for trusted staff. They also ask the worker to accept the payment and not to sue Pemex in any labour, civil, commercial, criminal or administrative court.
Ramos said word was also circulating of at least 800 dismissals among members of the STPRM, but Expansión could not confirm that or tie it to the same restructuring. The UNTyPP asked the Energy Ministry for a meeting and, with no reply, said it would protest outside the ministry.
Key Dates in the Dispute
- —14 April: Pemex changes its rules for trusted staff
- —3 June: a labour appeals court rejects the union’s collective action
- —7 August: the Supreme Court accepts the union’s review appeal, its lawyer says
- —4 September: Pemex and the STPRM agree a 4% pay rise
- —5 October: the union counts 11 dismissals in Reynosa
- —21 October: dismissal letters published; union marches in Mexico City
- —22 October: Pemex denies mass layoffs and pay-scale cuts
Why the Union Is Not Recognised
The UNTyPP was founded on 18 March 2008, holds registration with Mexico’s labour ministry and says it groups more than 5,000 oil technicians and professionals. Pemex does not treat it as a union and classes its members as trusted staff, which the union says limits their protections.
Article 3 of Pemex’s trusted-staff rules, changed on 14 April, says anyone hired under those rules is outside the union contract. The union argues that Mexican labour law looks at what a person actually does, not at the job label Pemex chooses.
Expansión reported that the union wants the same working conditions as the STPRM and an end to what it calls an employer sham. Lawyer Enrique Guerrero said the union has been told that the lack of a pay rise will probably last the whole six-year presidential term.
The Supreme Court Case Explained
On 3 June the Eleventh Collegiate Tribunal in Labour Matters of the First Circuit rejected the union’s collective action, Expansión reported. It gave three reasons: the collective route was wrong because each worker’s duties must be judged one by one, there was no discrimination because the workers were hired as trusted staff, and there was no direct clash between Article 3 and the Federal Labour Law.
The union appealed for review to the Supreme Court, arguing that Article 9 of the Federal Labour Law makes trusted status depend on a person’s functions and that Pemex’s director general cannot decide it alone. Guerrero said the Court accepted the appeal on 7 August and notified it recently, while the union announced the admission on 20 October, according to Industry & Energy Magazine.
Justice Loretta Ortiz Ahlf will prepare a draft ruling for the full court, Expansión said, and no deadline applies. Admission of the appeal does not mean the Court has sided with the workers, the magazine stressed.
The Pay Gap Behind the Dispute
On 4 September Pemex and the STPRM signed a 2026-2027 wage deal with 4% more ordinary pay and 2% more benefits from 1 August, plus 3.12% on gas and gasoline benefits. From 1 January 2027 tabulated wages rise a further 5%, which Pemex says adds about 1.5% on average once knock-on payments are counted.
The UNTyPP says those gains have not reached its members, as it said of a 4.5% rise last year. Guerrero called the Court the only authority that can stop what he described as systematic violations of labour rights at Pemex.
What It Means for You
US bond investors and Pemex suppliers should read this as a sign that the company is trimming costs while keeping its pay deal with the main union. Pemex said on 15 October that HR Ratings credited it with lower financial debt and better liquidity, yet its staffing statement offers no savings figure.
People in Texas border towns have a stake because Reynosa, where the union places the first dismissals, sits across from McAllen. The sources reviewed report no fuel-supply or production impact from the staffing changes.
Our explainer What Is Pemex covers the company’s role and debt, and our earlier report Pemex Fires 11 Workers and Cuts Pay Levels covers the first dismissals. Our Mexico power structure guide shows who runs the state, and Pemex Says Debt Fell US$20 Billion covers its finances.
What Is Not Known
Even as Pemex denies mass layoffs, it has not said how many people were dismissed or moved to lower levels, and Expansión found no overall count. The 0.21% figure comes with no stated base, so the number of jobs is unknown.
The claim of at least 800 dismissals among STPRM members is unconfirmed. The sources reviewed do not say whether any court has ruled on the level cuts.
No date is set for the Supreme Court ruling, and the Court has not said how it will decide. Expansión’s source dates the admission to 7 August while the magazine dates the union’s announcement to 20 October, so the sequence is not fully clear.
Frequently Asked Questions
Does Pemex deny mass layoffs?
Pemex says mass layoffs are false but confirms a 0.21% cut in its workforce in 2026 from restructuring. A union counts at least 11 dismissals in Reynosa on 5 October.
Is Pemex cutting salaries?
Pemex says pay scales are not being reduced. The union says individual workers have been moved to lower levels, one from 39 to 30, so that the worker earns less than half.
What is the UNTyPP?
It is a union of more than 5,000 oil technicians and professionals, founded in 2008 and registered with Mexico’s labour ministry. Pemex does not recognise it and treats its members as trusted staff.
What will the Supreme Court decide?
It will review whether Pemex can classify workers as trusted staff by contract rather than by their duties. No deadline applies, and Justice Loretta Ortiz is to prepare the draft ruling.
What does it mean for US readers?
Bond investors and suppliers see Pemex trimming costs while a labour dispute heads to court. The sources reviewed show no effect on fuel supply or production.
Sources: Pemex press release 85, 22 October 2026; El Universal, 22 October 2026; Expansión, 23 October 2026; Expansión, 21 October 2026; Industry & Energy Magazine, 20 October 2026; Industry & Energy Magazine, 23 October 2026; Pemex press release 74, 4 September 2026; Pemex press release 84, 15 October 2026.
Editorial responsibility: Matthias Camenzind, Editor-in-Chief · Editorial standards · Report an error
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