Tariff conflict: The employer asks for extra direct aids and eliminating the boundaries to dismissal within the community mechanism | Economy | EUROtoday

Entrepreneurs contemplate that the tariff conflict opened by the United States in opposition to the remainder of the world has created “a situation that is a challenge and that it is generating as much uncertainty as confusion” amongst all financial brokers. This was outlined on Wednesday, the overall secretary of the employer CEOE, José Alberto González-Ruiz, who has additionally evaluated the shock plan introduced by the Government in opposition to US tariffs that can indicate the mobilization 14,000 million euros. “We would have liked more direct aids”, along with the ensures and credit score strains that includes the federal government plan, mentioned the employer chief.

In addition, González-Ruiz-who has participated on Wednesday within the presentation of the report Human capital outlook On the labor market, who put together researchers from BBVA Research and Fedea for the EY Institute – it has referred, to criticize them, to the boundaries to the dismissal that includes the mannequin of short-term employment regulation recordsdata (ERTE). This enters the so -called community mechanism, which could possibly be activated by the Government inside the protecting defend for tariff conflict. “We do not agree [con dichos límites al despido] Because if a company that invoiced 100, now invoice 50, there is no sense to [los empresarios] We cannot operate there. ”The Employers CEOE plans to hold tomorrow, Thursday, an extraordinary board of directors to evaluate the situation and impact on companies as well as the possible institutional responses, business sources have reported.

In a similar line they have manifested from the employer of small and medium -sized companies, Cepyme, where they value “the fast response of the Spanish authorities by approving a package deal of measures”, but warn that “neither the quantity nor the strategy is sufficient.” They also criticize that “the conditionality of the accredited aids, resembling ERTE, invalidates the effectiveness of those measures, since corporations can’t assure how the evolution of the world financial context will affect of their outcomes accounts.” And therefore they revive that the aid “are configured as a helpful instrument to redirect their gross sales and adapt their manufacturing to be able to assure the viability of the corporate, though this supposes its residence,” said the organization in a statement. Or what is the same: they demand that employment aids are not conditioned not to be able to say goodbye.

The Government has not yet activated employment protection measures in the Royal Decree-Law published on Wednesday by the Official State Gazette (BOE) and keeps the negotiating table with entrepreneurs and unions open to specify the measures that the new social shield will incorporate. Whatever the final scope of these measures, in work they defend the philosophy that forces companies to return the money of the subsidies that benefit (in this case the bonuses and exemptions of social quotes) if they commit layoffs in a certain space of time.

That said, the secretary general of CEOE, who also held this position in Cepyme, has made a lit defense of the role of SMEs in Spain, ensuring that these companies will be among the most affected by the tariff war, either directly or indirectly. “SMEs, particularly those that have between one and 5 employees, are in a state of affairs of fragility, which regularly disappear to their margins. More than 600,000 of those SMEs are on the breaking point, since they current severe liquidity issues,” González-Ruiz denounced. He has also complained that bureaucratic complexity when requesting European funds makes only 13% of smaller companies requested them. He has also rejected the reduction of the working day to 37.5 hours per law, because, as he has said, he will raise the salary cost by 6%, with an impact of about 12,000 million in the companies and “it will be totally unfeasible in the hospitality and trade”.

Employment rebound

For his part, the director of Economic Analysis of BBVA Research and coordinator of the report on the march of the labor market, Rafael Doménech, has confirmed that in this first quarter of the year the growth of employment “has not solely continued however has regained.” And, despite the fact that the rains have left a March slightly worse than expected in the occupation, the annual employment growth, according to the calculations of these economists, remains around 2.6%. That said, Doménch added that “a worrying ingredient of the restoration that Spain is having, and that it’s carefully linked to funding, is that this price of creation of such excessive employment contrasts with the weak point of productiveness by busy. So sustaining this progress of the occupation and to converge with Europe into productiveness is likely one of the nice challenges of the Spanish financial system.”

However, the analysis presented on Wednesday is prior to the president of the United States, Donald Trump, to detonate the tariff war against the rest of the world, so Doménech has specified that, despite not having daily affiliation data since “the good blow that the markets noticed final week”, the impact on employment is something that “worries” BBVA Research. In the institution they consider that this crisis of international trade “is a big toll that should endure the Spanish financial system and the labor market.” And he has continued: “There is a good threat in all the pieces that’s taking place and it’s clear that exporting corporations will endure immediately and not directly, not just for their publicity to the North American market, however just because they’re immersed in manufacturing chains.”

In this scenario, the head of the BBVA Studies Service has rejected again and, like CEOE general secretary, the cutting of the day by law. “If final 12 months it was tried to take away from collective bargaining its potential to debate the labor market, doing so now could be so as to add extra uncertainty in a panorama so unsure by the tariff conflict,” he mentioned.