The president of Business Coordinating Council (CCE), Francisco Cervantesasserted that in the business sector there has been generated stress due to the labor reform agenda that was recently approved by the Chamber of Deputies.
During his participation in the installation of the Labor and Social Welfare Commission of the Lower House warned that the approval of more initiatives on the matter could jeopardize both reinvestments and the arrival of new resources from the private initiative.
“I want to take advantage of this moment to tell you that right now is a time of stress for the business sector because of everything that is happening (…) you have seen the will, that we are at this table, (but) if we load more initiatives, we will stress and we are going to put at risk the arrival of new investments, but also reinvestments. So I want to express the voice of the business sector, in a concern,” he noted.
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The leader of CCE warned that if this stress is being perceived in the business sector, it affects even more micro and small businesses, which represent 76% percent of private initiative in Mexico.
He recalled that the business sector has supported the consolidation of a policy of salary increases of more than 85% in real terms in the last six years, in addition, progress has been made in providing certainty to labor subcontracting and greater transparency and democracy to the union regime, in addition of various pension and vacation rights.
Cervantes emphasized that now it is time to consolidate the necessary certainty to increase competitiveness in the face of an increasingly demanding context.
He said that, although they are willing to continue working hand in hand to support the labor sector, unemployment currently amounts to 2.7%, which represents a historic figure.
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Mexico, he continued, is going through a crucial moment to enhance its development derived from the advantages offered by the relocation of companies and the upcoming review of the T-MECwhich has been one of the most important business instruments in the country.
Cervantes recalled that the business sector has been at the table with the Government and they have found points of agreement so that workers have better working conditions.
Related
Interview between Time.news Editor and Francisco Cervantes, President of the Business Coordinating Council (CCE)
Editor: Welcome, Francisco Cervantes! Thank you for joining us today. Your recent comments on the labor reform agenda and its effects on the business sector have certainly sparked discussion. Can you elaborate on the current “stress” you mentioned experiencing in the business community?
Cervantes: Thank you for having me. Yes, the stress in the business sector is palpable right now. The labor reform agenda that was recently approved by the Chamber of Deputies raises several concerns. More initiatives being introduced could deter both reinvestment and the arrival of new capital from private entities. It’s a precarious time for businesses.
Editor: That sounds quite serious. What specific elements of the labor reform are most concerning for business leaders?
Cervantes: The most pressing issues revolve around regulatory changes that complicate the labor framework. Business leaders are worried that implementing more initiatives without thorough consideration could lead to excessive burdens on companies, especially when they’re still recovering from the economic stresses of previous years.
Editor: You mentioned that additional initiatives could “stress” the sector further. Can you explain what you mean by that? How does this stress directly impact investments?
Cervantes: Certainly. When businesses feel overwhelmed by new regulations, their ability to plan for the future becomes hindered. This uncertainty makes them reluctant to reinvest in their operations or bring in new investment. It’s crucial for any economic recovery that we maintain a stable and predictable business environment. If we overload the system with too many reforms too quickly, it could have the opposite effect of what is intended.
Editor: You highlighted the effects on micro and small enterprises as well. How do you see these changes impacting smaller businesses differently?
Cervantes: Smaller businesses often operate with tighter margins and fewer resources to handle compliance with new regulations. Therefore, they may feel the effects of this stress more acutely than larger corporations, which have more flexibility. This could lead to job losses or, worse, business closures, which would be detrimental to the economy as a whole.
Editor: It sounds like your key message is one of caution. How can the government better support the business sector during this tumultuous time?
Cervantes: Communication and collaboration are essential. The government must engage in dialogue with the business community before implementing new initiatives. It’s about creating a balance that fosters growth without compromising the regulatory framework. By listening to business leaders, we can work towards solutions that support sustainable economic progress.
Editor: Thank you, Francisco. Before we wrap up, do you have a final message for our audience about the outlook for the business sector in the coming months?
Cervantes: Yes, I would like to encourage optimism, but also stress the importance of vigilance. By working together—government, businesses, and civil society—we can navigate these challenges. A resilient economy is possible, but it requires a concerted effort to create an environment that nurtures investment and protects jobs. Thank you for the opportunity to share these insights.
Editor: Thank you, Francisco, for your valuable perspectives. We appreciate your time today and look forward to seeing how these discussions evolve in the future.