The Córdoba Stock Exchange, through the Economic Research Institute, requested the national government to implement a salary reduction for state employees who do not perform essential tasks during the coronavirus quarantine.
“As countries like Uruguay have done, the public sector should take an exemplary measure of temporary reduction in the remuneration of its personnel, obviously excepting the essential services that need to be supported in the health emergency,” said the stock market entity.
Insufficient for private
Although the decision of the national government to implement measures for low-income and the most vulnerable sectors that are essential in this context stands out, the Stock Exchange observes that the package of measures for the rest of the economy is insufficient; “It is limited in relation to that of other countries and still leaves the economy very vulnerable,” he warns.
He admits that given the increasing difficulty of private sector companies to pay salaries, the implementation of mechanisms to reduce employer contributions and expand the Repro program, which subsidizes part of the payroll of companies in crisis, should be speeded up.
“In this context, this measure should be applied in a general way to all companies, avoiding discrimination, since it will be very difficult to detect the real situation of each one of them,” he points out.
For the Stock Exchange, the extension over time of these policies should be a function of how long the quarantine lasts and the process of recovery of the economy, “since they are of an exceptional nature, in the health and economic emergency due to the we are transiting ”, concluded the institution.