Salaries Impacted by COVID-19

Unforeseen circumstances lead to unforeseen measures. As the impact of the virus travels across the world, public life remains mostly closed and companies are starting to struggle to make profits. In some cases, this means it becomes difficult to pay wages. Measures taken to offset these losses become apparent in various sectors. One notable example in Spain includes FC Barcelona, where both staff and players such as Lionel Messi are being forced to take pay cuts, with the club citing social responsibility as the main reason. Most of the population, however, has neither the salary nor the savings of a rich football player.

In Mexico, El Economista reported that many face precarious conditions, even when they are employed. Losing out on wages is an immediate danger for most of Mexico’s working population. This had led to direct attention from the government. President López Obrador has asked the private sector to keep paying wages in full, if possible. Furthermore, the Minister of Foreign Relations, Marcelo Ebrard, emphasized that cutting wages down to the minimum due to the virus will result in companies facing legal action.

Top government officials are not safe from a pay cut, however. President López Obrador announced that those with top salaries would earn less for the time being. Government employees earning “less than MX$30,000 or MX$20,000” (US$1225 – US$816) will not be affected by this measure, reported El Economista.

Another option presented is voluntary solidarity. Mexico Daily News reported an example of pilots at Aeroméxico. The airline’s pilots offered to take a 50 percent pay cut and furthermore relinquished bonuses for overtime, night pay and productivity. Although other airlines such as British Airways had already enforced a similar rule, these measures show potential for unity and common interests.