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Gerardo Cuerva: "Companies no longer think whether to close or not, they are thinking when to close"

2020-11-30T22:27:01.088Z


The president of the employers' association of small and medium-sized companies demands direct aid so as not to increase business debt


Gerardo Cuerva, current President of the Cepyme employer association, at its headquarters in Madrid.

When the tape recorders are turned off, Gerardo Cuerva (49 years old, Granada) relaxes and starts talking about the innovation projects that he has launched in his electricity generation and distribution companies.

The group that he directs, and to which he dedicates the time when he is not CEO of Cepyme, employs about 130 workers.

He believes that the Government has done well "with the issue of ICOs", the public guarantees so that companies do not lack liquidity in the coronavirus crisis.

But he also defends that the time has come to take another step forward.

Question

.

How much longer can companies last?

Answer

.

Little bit.

The effort that the company is making is maximum.

More than eight months have passed and the company has drawn on all its resources and even its own personal assets.

It is necessary to launch an SOS.

Commerce and hospitality say that a third have not lifted the blind, 20% in one sector and 30% in another.

There are people who have not been able to hold out.

The company is no longer thinking about whether to close or not, but when to close.

P

.

Well, there are

zombie

companies

.

R

.

I don't like that concept.

There are companies that are having a very bad time and are taking a dangerous path: debt.

And the company comes to a time when it cannot borrow more.

What will happen tomorrow?

If we get heavily in debt and hit hard, what will happen to the competitive environment?

If there are States that help their companies much more than Spain, when we come out of the pandemic it will not be the same situation that of a German company as that of a Spanish one.

P

.

Do you ask for direct help?

R

.

Yes. There comes a time when debt can weigh down the future.

And now the company needs a real injection, which can come in many ways.

Where is the tax incentive or the reduction in tax pressure that we have had?

I think it has been very different from the rest of the European countries.

P

.

Can SMEs withstand a third wave?

R

.

If we are anticipating a third wave, it is because there has been a second.

And if so, it is because we have not done things well.

I am against the approach of getting out of this situation from 100 to 0 and from 0 to 100. You have to live with the virus.

I hate the idea of ​​confining ourselves, going into our homes for a month, fixing the sanitary parameters and then everyone on the streets.

And after another month, at home again.

P

.

Should ERTEs be extended without a deadline?

R

.

In the meetings that I have had with the Government, it is not that I disagree that the measures were longer term, but rather that budgetary prefer to do it in the short term.

To give certainty, it would be much easier to pack them up and have everyone know the rules because it gives you a longer term.

Companies ask me: what will happen in January, September, July?

There is also the obligation to maintain employment for six months once the ERTE has expired.

I am a businessman and the most bitter drink that I pass is when I have to do without a worker.

But many times, and more at this time, it is preferable to do without three workers to be able to support seven.

P

.

There is much talk of a next wave of EREs, of layoffs, but it does not come.

Will there be?

R

.

I am very concerned about the end of the year.

Between March and April, more than 100,000 companies disappeared and that is direct employment that was destroyed.

We have had an active summer.

But be careful, let's not throw the bells flying, because the end of the year can be very hard.

P

.

Should the minimum wage go up?

R

.

It is the responsibility of the Government, although with negative inflation and a dramatic situation like the one that many companies and workers are going through, thinking about raising the minimum wage I think is off the table.

In addition, in four years it has risen more than 45%.

P

.

Do you think the same for the rest of salaries?

The framework pact of agreements has already ended.

R

.

We should focus our efforts on moving this extraordinary situation forward.

P

.

Does the same apply to the labor reform?

R

.

You are right.

It is a lie that entrepreneurs do not want to negotiate.

Improvements will have to be made in labor relations, but now we are going to make an effort to alleviate this situation as much as possible.

P

.

And is it not helped by changing the labor reform?

R

.

It would have to be analyzed.

P

.

Haven't they analyzed it?

Before the pandemic they were negotiating.

R

.

I can't forget today.

We want action today, there will be time to sit down and analyze the issues on the table.

P

.

And none of the four fronts on the table help the company today?

R

.

No. Talking about outsourcing or eliminating it would be a serious problem for SMEs.

There is time to sit down and look for the best deals that increase one thing I never hear about, competitiveness.

In any type of negotiation we have, let us emphasize that you have to compete in other markets and that you have to be competitive.

Otherwise they take you off the market.

P

.

How?

With a better product or with less labor cost?

R

.

With a better product, with efficiency in costs, but not in labor costs, in all.

You have to be efficient, productive, have knowledge, training ... I like to pay good salaries, that the people in my company earn more than the one next door.

It guarantees me better workers, more committed, but I don't believe in raising salaries just for the sake of it.

Q.

Speaking of European funds, you are in favor of directing aid to the most productive sectors.

Do you advocate selective aid?

R.

The most important thing is the execution of the funds, not to announce them [aid] but to implement them.

History says that Spain is not very good at execution.

We need rules to be changed, procedures to be efficient ... Sometimes, when we start a project, there is a process of eight months.

Second, in Spain we have multinationals, which are tractor companies, but we must try to get the funds to the bottom line.

For this, we have offered the capillarity that we [employer organizations] have throughout the territory to reach all companies.

If not, digital transformation will not occur.

Digital transformation is about people, it is not about buying computers.

P.

SMEs are the vast majority of the productive fabric, should they be the center of aid?

R.

If we really want it to be a success, SMEs have to be within that change.

Q.

And apparently so far, are the government and the communities doing well?

R.

I am concerned about deadlines and execution.

Source: elparis

All business articles on 2020-11-30

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