Mexico: employers’ confederation calls on the State to cover part of salary outlays in a bid to avoid redundancies

Mexico’s employers confederation body, Coparmex, is seeking the establishment of a ‘solidarity salary’ for Mexican workers that are being hard hit by the Covid-19 related economic paralysis. This ‘solidarity salary,’ which would be less than or equal to the employee’s monthly amount, would be paid jointly by companies and the federal government. As a result of the new salary arrangements and except for those paid up to 3 times the minimum wage (MXN 123, €4.6 per day), who will continue to receive their full monthly amounts, salaries will otherwise be lower. Employers would contribute between 50% and 33% depending on the employee’s salary, while the government share could reach up to the equivalent of 3 times the minimum wage (MXN 369 pesos per day, or €14 euros) for those on the lowest salaries. ‘The goal is to avoid layoffs due to the cessation of companies’ business activities or the reduction in their business revenues,” Coparmex announced on 20 April, adding that the proposal is ‘viable for the Ministry of Budget’. Until now, the government of Andrés Manuel López Obrador (Morena, leftwing) has consistently turned a deaf ear to employers. On 22 April the head of state presented the decree enacting his plan to ‘rescue the economy’ that is based on budgetary austerity and the continuance of major State projects.