Wage increase will increease layoffs - business group

 
952Views 3Comments Posted 18/12/2019

 

A wage increase  in the current economic slowdown would impact businesses, create layoffs  and lead to  bankruptcies   says the National Council of Private Enterprise (Conep),

.Julio De La Lastra, president of the Council said on Tuesday, December 17  that the position of the sector is based on the fact that the adjustment to the salary would have repercussions on the existence of jobs and companies if the decision is not handled in a balanced way. He explained that a 1% increase in the minimum there is an additional annual $30 million payroll expense that companies will have to face, especially small and medium-sized enterprises (SMEs), which make up most of the business fabric of the country and that have been reporting lower income.

“SMEs represent more than 90% of companies in the country. Any adjustment to the salary at this time will impact operations and increase layoffs, ”said De La Lastra.



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Comments 3

user
Richard

Sure thing...like all those times that fat cat CEOs getting million dollar raises and enormous golden parachutes caused massive layoffs. Conservatives are always crying wolf and ignorant working stiff swallow it. It’s nothing more than male bovine excrement!

11 months ago
user
ThinkerSoul

There should not be any increase in salaries as in reality what we have in Panama are investors trying to use the offshore banking system Panama offers, so in reality laundering their ill gotten money in the process and creating a fake GDP. Panama as a Tax Haven has, instead, to try to diversify its small economy, though the country’ economy is sequestered by those putative international investors who claim that their money brought is not made within in, but is money made overseas, poor Panamanians having to survive in a place that has totally sold its sovereignty

11 months ago
user
ThinkerSoul

There should not be any increase in salaries as in reality what we have in Panama are investors trying to use the offshore banking system Panama offers, so in reality laundering their ill gotten money in the process and creating a fake GDP. Panama as a Tax Haven has, instead, to try to diversify its small economy, though the country’ economy is sequestered by those putative international investors who claim that their money brought is not made within in, but is money made overseas, poor Panamanians having to survive in a place that has totally sold its sovereignty

11 months ago
The comments are the responsibility of each author who freely expresses his opinion and not that of Newsroom Panama.
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