Image credits: Presidencia de la República
News Article

346,878 Jobs Lost / Big Companies Owe MX$50 Billion

By Ricardo Guzman | Wed, 04/08/2020 - 11:48


Jobs lost due to COVID-19 pandemic. Secretary of Labor (STPS) Luisa María Alcalde said 346,878 workers have withdrawn from the Social Security register due to the COVID-19 contingency. “From the first detected case of COVID-19 we began to identify a drop in formal employment, from March 13 to April 6,” she said. Alcalde explained there is no legal basis to dismiss workers during the health crisis.

Banks will distribute government support. Banco Azteca, Banorte and Santander will be distributing the 1 million loans to small companies (SMEs) to reactivate the Mexican economy, President López Obrador announced. The president said he spoke with Carlos Hank González, Ricardo Salinas Pliego and Ana Botín, presidents of Banorte, Banco Azteca and Santander, respectively, with whom he agreed that no commissions would be charged for these transactions.

Big companies owe MX$50 billion. President López Obrador said that instead of giving tax exemptions to big companies he will instruct Mexico’s Treasury (SAT) director to ask them to comply with their obligations. “I have instructed SAT’s director to call on them to voluntarily pay their debts, otherwise a legal process will start.” He said those big companies owe MX$50 billion in taxes and, if they pay, then more loans could be granted to support SMEs. The president said he will ask the Business Council (CCE) for help so debtors pay what the owe.

Inflation falls. Inflation has fallen in Mexico, which is good news in the face of the world economic outlook, President López Obrador said. “Today the inflation data was released and it showed a reduction because gasoline prices are falling. This helps us in a crisis situation,” he explained.

SMEs are heroic. President López Obrador recognized small entrepreneurs because despite the economic difficulties they are experiencing due to the COVID-19 pandemic, they have not fired workers. In contrast, the president lamented that there are big national and international companies that have terminated jobs. He asked those companies to reconsider their actions.

Political parties under the spotlight. President López Obrador reported on the political parties that are willing to donate part of their financing budgets to add more resources to fight the COVID-19 pandemic. "Morena already gave half of its budget,” he said, referring to his own party. The president said PES also accepted while the rest have yet to make a final decision.



Click HERE for full transcript in Spanish.

Ricardo Guzman Ricardo Guzman Editor