Extended vacation days affect the corporate economy: Coparmex

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Extended vacation days affect the corporate economy: Coparmex

Although the extension of days off for a worker was “for the sake of social justice,” it is affecting the corporate economy, as acknowledged by the National President of the Confederation of Employers of the Republic of Mexico (COPARMEX), Jose Medina Mora Icaza.

“We were on the level of countries like Uganda, with 12 days we came close to Latin American countries like Colombia and Ecuador a little less.”

He pointed out that Cobarmix submitted three proposals to the deputies and sheikhs, which are being analyzed for approval.

“One is gradual, that is, it starts from 6 to 9 and then from 9 to 12 (days), so that the infinitesimal small works are not affected, and secondly that they do not have to take 12 days continuously, but the first 6 and then the other six are flexible and that the increase in days Which starts with 12 is one day a year for the first five years. With this we have reached the average number of days of international leave.”

The representative of the business sector realized that companies are not only affected by vacation days, but also by the increase in the minimum wage and the pension law that was approved in 2020, given that the aforementioned law begins in 2023 with a contribution by employers of 1%. per year for 8 years.

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“There are three cost increases that the challenge for companies is to compensate for these increases with productivity (…) We do not consider that there will be a closure of companies, they are just cost increases that we bear with great responsibility.”

The message for companies is that they must increase productivity, Mora Icaza stressed, since Mexico’s production is currently only 30 percent compared to the average of OCD countries, “there is a lot to improve.”

Regarding the proposal to increase the minimum wage, he said that it is under discussion in the Minimum Wage Committee.

“We put forward a proposal of just over inflation, an increase of 15 percent, the unions proposed 25, and we will come to a consensus with the minimum wage committee.”

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