87% of firms hit by the crisis, with problems paying wages

The survey was carried out by the Argentine Industrial Union. It revealed that 72% of firms suffered a drop in sales level

A study by the Argentine Industrial Union on the impact of the pandemic on productive activity indicated that 72% of the companies consulted registered a drop in sales of more than 60%, of which two thirds work in the non-excepted activities sector. .

Although it was expected that the activities not excepted from the closure of activities would be the most affected, it is very striking that 35% of the companies that were able to continue operating because they performed in sectors considered “essential” also had sales falls of more than 60% .

At the same time, 87% of companies whose sales fell more than 60% acknowledged having “serious difficulties” to face the payment of salaries, almost two thirds of which said that they will not be able to pay them and just under a quarter said that they will be able to pay “approximately half”.

Among the companies whose sales fell less than 60%, the activities excepted from quarantine predominate, as expected, but still 40% of them indicated that they will have difficulties paying their salaries: 25% do not know if they will be able to pay them and 15% You can only do it “half-heartedly”.

The survey was carried out by the Center for Studies of the Industrial Union (CEU). According to Infobae, all companies were affected by the crisis and acknowledged having serious financial problems.

The most affected (over 60% drop in sales) had 75% of checks rejected so far in April and those least affected, had 40% of rejected checks.

Another common problem is lack of access to credit to deal with problems of wages and rejected checks, which are increasingly blocking the payment chain. “At the close of the survey,” says the Industrial Union study, “most companies could not access credit programs.”

In the case of the most affected companies, no less than 80% said that they did not manage to access bank credit.

In a short text, the Industrial Union highlights the results of the study, with their pronounced drops in demand and production and their consequent negative impact on financial and wage obligations, were “shared with those shared with national authorities to improve the implementation of measures in force and the design of initiatives that address the problems described. “

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