Mexico: Job preservation programme

Enterprises in sectors focusing heavily on foreign trade and/or producing goods whose purchase can be deferred over time are most vulnerable in a crisis situation. This has been the case in such industries as automotive and automotive spares, electronics, electrical appliances and capital goods, where the slow-down in production caused industrial activity in Mexico to drop by -11.6% in May. With a signifi cant loss in sales value, such enterprises need to reduce costs and increase liquidity. In this context, designing policies to preserve jobs and human capital at these enterprises is a priority, designed to avoid loss of workers' income, and also loss of personnel with a high level of knowledge and specifi c skills that are important to these companies. To this end, the Federal Government designed the Job Preservation Programme, which aims to protect employment by strengthening practices to reduce enterprise costs, including shorter working hours instead of lay-offs and partially compensating losses in worker income by means of a subsidy.