The National Monte de Piedad of Mexicofounded in 1775 and considered the oldest financial institution in America, You could go bankrupt this decade if there are no changes to your collective bargaining agreement.assures its general director, Javier de la Calle.
The director of the private assistance institution argued that the current contract contains “ostentatious benefits” that cannot be sustained in the face of a “clear drop” in Mexico in the volume of operations of the garment sectorwhich consists of pawnshops in which people leave an object in exchange for money.
He also pointed out to reporters on Tuesday the role of growing competition and the rise of new financing options on offer in the market.
De la Calle maintained that, if these financial pressures continue, it will go bankrupt in 2027, according to expert reports from the institution.
There is no longer time for the Monte de Piedad”, he warned at a press conference.
De la Calle assured that, within these benefits, workers enjoy 105 days of bonus, 11 months of work, private medical service and retirement with 24.5 years of work, as well as other clauses that prevent, he maintains, that the Monte de Piedad be more competitive.
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He asserted that the financial burden of the collective bargaining agreement absorbs 46% of the total cost of the Monte de Piedad, of 7,296 million pesos (about 429 million dollars).
Likewise, he explained that it represents 77.5% of the labor cost and 57% of the operating cost, which “evidences that almost one in two pesos of what enters the Monte goes to the union.”
To this information that I have been showing, it is necessary to add the commissions, the doublets and bonuses, and it does not consider the private medical service and the retirement conditions, unsustainable in the medium term, “added the manager.
De la Calle stated that the union leadership has not shown openness to dialogue and, on the contrary, has published “an imprecise reading” of information on institutional finances.
Reaching a sensible agreement regarding the collective bargaining agreement would allow Monte to have adequate labor costs, updated hours, real templates, required positions, and a better offer for its clientele,” he said.
In addition, the manager warned that the only alternative, if the collective agreement was not transformed, would be a quick closure.
The security institution also indicated that the Ministry of Labor and Social Welfare of the Mexican Government has participated in the mediation of this conflict.
De la Calle assured that the transformation of the Monte de Piedad is necessary and that, if it survives, he will continue to support the Mexican population through his efforts.
While the press conference was taking place, a group of workers protested outside the institution, where they expressed their disagreement.
El Monte de Piedad, whose main building is of tourist interest in Mexico City, provides services to more than 3 million people each year in 320 branches.
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