COPARMEX Calls For a National Agreement
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COPARMEX Calls For a National Agreement

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Gabriela Mastache By Gabriela Mastache | Senior Journalist and Industry Analyst - Mon, 04/20/2020 - 12:46

COPARMEX is proposing to engage in a three-way agreement led by the President López Obrador to save jobs and prevent companies from going bankrupt. In an interview with El Economista, Gustavo de Hoyos Walther, President of COPARMEX, says that the business organization is proposing a three-way plan in order to save companies from bankruptcy and prevent the loss of jobs. “In light of the crisis, the most important thing is to take urgent measures to preserve employment and prevent the disappearance of thousands of companies.”

The agreement proposed by COPARMEX includes guaranteeing 100 percent of the salary of all workers that earn between one and three minimum wages (up to MX$9,300). In this scheme, the government would pay for 50 percent of the salary and the private sector for the remaining 50 percent. For workers that earn between three and 10 minimum wages, the proposal is that workers receive 80 percent of their salary, with the government paying for 40 percent and the private sector for another 40 percent. For those that earn more than 10 minimum wages, the confederation proposes workers receive 50 percent of their salary, with the government paying for 25 percent and the private sector the other 25 percent.

According to COPARMEX, the total cost of these proposal is of MX$94.4 billion and is equivalent to 0.35 percent of the country’s GDP. To finance the scheme, COPARMEX is asking the government to take on new debt rather than cancelling iconic projects. De Hoyos also mentions that the support for wages would reduce inasmuch as the country returns to its usual economic activity.

As of when the country can start returning to its normal economic rhythm, de Hoyos says that they expect that in May activities considered as non-essential can return in an escalated manner to normal, specially activities that have developed high-control standards that follow international standards such as the automotive and the electronics industry.

De Hoyos says that given the urgency of the moment, they would like the agreement to be signed on May 1. The proposal will be presented today to the Presidency office.

 

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