Mexicana Inks Historic Union Deal

Mexicana Airlines has entered into an historic agreement with the National Union of Transport, Manufacturing, Aviation, Service and Similar Workers (SNTTTASS).

The agreement provides for more flexible labor conditions for ground workers –conditions which had not been modified for more than 15 years- and is expected to translate into annual savings of $20 million for the company, giving continuity to the productivity agreements signed in 2006.

Experts say this accord heralds a new era in labor relations between companies and unions in Mexico and is tangible evidence of Mexicana’s drive to streamline its operations and remain at the vanguard of the commercial aviation sector.

The terms of the agreement will give stability to Mexicana’s relations with SNTTTASS right through until the year 2009. In support of the airline’s efforts to strengthen its finances, ground workers accepted a “zero” salary increase for 2006, and inflation-indexed raises plus one percentage point for 2007, 2008 and 2009.