Mexican business to invest in energy
Employers leader criticizes Mancera’s wage proposal
THE NEWS
The Employers Federation of Mexico (Coparmex) President Juan Pablo Castañón said that as a result of the energy reform, Mexican companies may participate in the energy sector with an investment of at least $10 billion a year.
“Pemex (Petróleos Mexicanos) is talking to some international companies to form alliances or co-investments,” Castañón said. “The round one is attractive and other companies will be wanting to participate, regardless of a possible alliance with Pemex.”
Regarding salaries, Castañón said that an increase in minimum salaries must go hand in hand with advances in the internal economy and since sales in the energy sector are decreasing, it is impossible to establish a salary increase by decree. For this reason, he continued, an increase must be paired with internal economic growth, which according to the Central Bank of Mexico, will be between 2 and 2.8 percent this year.
Castañón said that Mexico’s economic growth will be mainly in the exports sector, particularly to the United States.
“This growth will happen in the manufacturing, auto and, maybe, oil sectors,” Castañón said. “However, internal economy hasn’t been strengthened, which will make it very difficult for companies to absorb an abrupt (salary) increase by decree because it would also be inflationary.”
Castañón said a salary increase as proposed by Mexico City’s government would probably have a political agenda that would damage political stability. It would hinder dialogue and deep economic analysis that could strengthen the economy at medium and long terms, he said.
He added that Coparmex is in favor of conducting negotiations and including every actor involved in the possible salary increase. Coparmex is also in favor of taking into consideration whether the salary increase would be sustainable in the long term.
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