The SME employers close ranks against the labor policies championed by the Government. The Cepyme study center presented this Monday a report in which it lists the obstacles that, according to businessmen, small and medium-sized companies face when it comes to gaining size. A document in which orthe increases in the minimum wage and the reduction of the working day have a prominent place that the Executive wants to promote against the wishes of the employers.
“The latest reforms proposed by the Government entail a strong increase in costsespecially for smaller companies, for which they represent a greater burden,” reflects the document presented this Monday. “It would be desirable to evaluate the impact of these measures on SMEs and their productivity before implementing them,” it adds. “The continuous “Changes in labor regulations generate great uncertainty in companies, especially for SMEs, which have fewer resources and limit their ability to plan and create jobs,” he adds.
At the press conference in which the document was presented, the president of Cepyme, Gerardo Cuerva, indicated that The decisions that the Government is making “in the fiscal and regulatory sphere discourage growth of companies”. Asked about the increase in the minimum wage, which the Government is already negotiating with unions and employers, he indicated that “He comes to put another spoke in the wheel” of SMEs after an increase in this income that will reach 80% in the last eight years, he denounced.
Among the main barriers that, according to Cepyme, hold back small Spanish companies, employers mention an uncompetitive tax systemhigh labor costs and excess regulation with thousands of pages of the Official State Gazette (BOE). Problems such as vacancies also affect SMEs with special force, they highlight.
Smaller companies than in Europe
One of the main conclusions of the Cepyme report is thatThe average Spanish company is smaller than the European type company. On average, a Spanish company has 4.9 employees, compared to 5.9 for European companies. “With larger companies, salaries, career opportunities, innovation, exports and employment would be higher and unemployment and the fiscal deficit would be lower,” says Cepyme.
The study center of the employers’ association of small and medium-sized companies estimates that GDP would increase by 5.6% if Spanish firms were the same size as their European counterparts and would provide a million additional jobs. Among the reasons that would explain the smaller size of Spanish companies, Cepyme points to the “excessive” and growing bureaucracy. One of the main problems faced by SMEs, according to employers, occurs when the time comes to take a leap in size. At which time, according to Cepyme, they face more demanding regulation than European firms.
In response to these factors, Cepyme proposes modifying the legislation to take into account that the normal size of companies in Spain is small. For each new labor standard that is approved, they propose repealing another one, reduce costs and bureaucratic burdens and reform the labor framework to make it more flexible and stable. One of the measures they propose is to delay for four years the regulatory steps that SMEs face when they jump categories.
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