To flatten the COVID-19 contagion curve, the government ordered non-essential businesses to closed. However, some have failed to comply with this order, putting the health of employees and customers at risk. Some companies have been ousted by the Ministry of Labor and Social Welfare (STPS) for not complying with government demands but others prefer to strip away the rules.
Luisa María Alcalde, Minister of Labor, reported that 6 percent of Mexico’s companies have not shut their doors for business even though they were asked to do so. The week before, 13 percent of companies in the country were still in a state of non-compliance. Alcalde said Grupo Elektra continues to attract customers and has kept its 10,000 employees all over the country working despite warnings.
It seems things will remain unchanged. Today a district judge granted a suspension to Grupo Elektra against the closure of its stores. The injunction is only valid for stores with Banco Azteca’s one-stop shops since financial activity is classified as essential during the COVID-19 pandemic.
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Voluntary pay cuts have more or less become a norm worldwide. How is this trend developing in Mexico and what other proposals are being made? Some companies offer employees unpaid leave, with the promise to be able to return to work once the situation resolves itself. Others are focusing on their highest earners to make the cut, although companies also elect to include everyone equally, except the lower-paid staff.