CANTV fails in pensions appeal

18 Oct 2005

Venezuela’s dominant fixed line operator CANTV must pay the debts it owes its former employees after a final attempt to appeal the ruling was rebuked. In July the telco was ordered to adjust the pensions of 3,408 union members to reflect the country’s minimum wage. It petitioned the Supreme Court to review the ruling, but the appeal has been dismissed. In response CANTV has decided to increase its contingency reserves to USD330 million for the third quarter to help cover the adjustment of the pensions. CANTV has yet to publicly announce how much the adjustment will cost, but analysts have estimated that the figure could be anywhere between USD325 million and USD930 million.

Venezuela, CANTV