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The largest operator of fixed telecommunications services in Mexico and its union were involved in complex negotiations regarding the new terms and conditions of the contract that govern their labor relationship. During this process of negotiations, one of the most debated issues was the amount and composition of the future financial obligations, specifically pension payments, that the firm was expected to pay to the different categories of workers.
The union of workers hired Oxford Competition Economics to elaborate a financial report in order to: (a) quantify the aggregate value of the financial obligations that the firm is obliged to pay to workers as well as its evolution during the next 40 years and, (b) disaggregate all these financial obligations by categories of workers and by pension scheme. The analysis involved the construction of a financial model that provided answers to all client´s requirements.