After this Wednesday the National Commission of Minimum Wages (Conasami) approved an increase to the minimum wage of 15% by 2021, the private sector warned that in the face of the crisis due to the pandemic, thousands of SMEs will break.
For its part, the Employers’ Confederation of the Mexican Republic (Coparmex) assured that this increase is irrational, has no logic and will cause the closure and bankruptcy of 700 thousand companies in the next three months, considering the economic crisis that is being faced by Covid-19.
“With the determination imposed, the entire burden of the increase is thrown on millions of microentrepreneurs, which combined with the acceleration of infections by the Covid-19 pandemic and the consequent closure of operations of more companies, the bankruptcy of thousands of businesses and the loss of even more sources of work is imminent, “said Coparmex in a statement.
Read also: Conasami approves a 15% increase to the minimum wage; will rise to 141.7 pesos
In addition to the fact that the government does not grant support, he added, they approve in Conasami a 15% increase that companies will not be able to carry out.
“With the lack of government support and now an irrational increase in the minimum wage, without gradualness or logic, the risk that 700,000 more companies will disappear in the next three months is aggravated.”
Meanwhile he Business Coordinating Council (CCE) said that the circumstances of the economy are serious and “an increase of 15% would strongly harm micro and small businesses, making the survival of many of them unviable. These are the ones who, due to their economic weakness, cover mostly amounts close to the minimum salary general”.
He added that it is the smaller companies that generate more employment in the country and those that “face much greater problems, compared to those faced by large companies, since they do not have the liquidity options, credits or access to financing that the big companies do have ”.
Read also: 15% hike to the minimum wage requires government support
Given this situation, informality will be further promoted at the cost of productivity, in addition to the fact that at this time “it is more important to maintain and recover jobs than to pursue an isolated objective of improving the salary of some at the cost of more informality and unemployment for many” .
pipe / lsm
– .
