Wage increase will increease layoffs – business group

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.