State-owned Petróleos Mexicanos is in advanced talks with Mexico’s powerful oil workers union to lower labor costs via a pension overhaul and for more flexible work rules to secure its future in a newly competitive environment, according to people familiar with the negotiations. Success in renegotiating the collective bargaining agreement at Mexico’s biggest company by sales and staff could determine how well Pemex performs now that oil prices are low and the former energy monopoly faces private-sector competition for the first time, analysts say. Moreover, the Mexican government has said it would assume a significant portion of Pemex’s $100 billion in unfunded pension liabilities if the current system is successfully changed. “If they finally agree on these changes, it would be the most important step Pemex can take to guarantee it remains a dominant and competitive player in the long run,” said Leo Zuckermann, political analyst at the […]