Note published on March 22 in Reforma, Negocios [Business] Section by Verónica Gascón.
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Note published on March 22 in El Norte, Negocios [Business] Section by Verónica Gascón.
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Note published on March 22 in Reforma, Negocios [Business] Section by Verónica Gascón.
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By law, companies must distribute 10 percent of their net profits among workers, a percentage that must be modified because it affects their competitiveness, labor lawyers pointed out.
Last Friday, the private sector and the Department of Labor (STPS) agreed to cap profit sharing at three months of salary for each worker. However, the percentage was not modified because that falls within the power of the National Commission on Employee Participation in Company Profits.
An analysis conducted by the De la Vega & Martínez Rojas Firm warned that the cap that was established does not solve the structural problem presented by the 10 percent of the participation in company profits.
“Small and medium companies cannot pay profits on the basis of three months of salary forced on them by the percentage of 10 percent which, in turn, is anti-competitive for large companies, a measure that has been largely responsible for personnel subcontracting”, the analysis pointed out.
What should be done, according to the lawyers, is reviewing the 10 percent set by the abovementioned commission, which includes the private sector, the workers’ sector and the Government.
It was just last year that the decision of the Representative Council of the National Commission on Employee Participation in Company Profits was published, and it ratified that 10 percent of net profits must be distributed, which will be valid for a term of 10 years.
