SMEs rebel against government interventionism and overregulation

SMEs rebel against government interventionism and overregulation
SMEs rebel against government interventionism and overregulation

Small and medium-sized businesses, represented by the employers’ association Cepyme, have risen up against the “intervention” and “overregulation” of the Government. During the General Assembly, several small businesses have read a manifesto “for the freedom of enterprise” in which they explain their weariness and concern about the political manoeuvres that affect the relationship with companies. Most of the darts are aimed at the second vice-president and Minister of Labour, Yolanda Díaz.

The event was supported by the president of the CEOE employers’ association, Antonio Garamendi, and by the president of Cepyme, Gerardo Cuerva. The representative of SMEs explained that the seven points of the text deal with to denounce “the situation of attack that we are suffering, because it is unfairbecause it violates our legitimate rights protected by the Constitution and because it is objectively bad for our country.” They rely on Article 38 of the Spanish Constitution, which defends the free action of the company.

The Manifesto of the Spanish SME for the freedom of enterprise contains the guidelines that, according to the company, the Government should not compromise on in order not to interfere in the proper functioning of business activity, avoiding its coercion and hindering its development. In short, defending the freedom of enterprise, stopping interventionism and the stigmatization of the figure of the entrepreneur. Cepyme defends the obtaining of benefits by companies.

The text, which has been read by small business owners across Spain, defends “dignity and business freedom.” According to its president, it denounces “the situation to which the Spanish government is forcing SMEs.”

The legislative burden or “control of the company”with special overregulation and intervention of the company through salaries or taxes, would be affecting the correct functioning of SMEs. “We ask that this attitude be corrected,” says its president Cuerva.

Business dignity, costs or political control

Employers are working hand in hand with unions not only on major reforms, but also in the nearly 5,000 collective bargaining tables. They accuse the Government of trying to break the internal balance of the agreements, in reference to the reduction of the working day and the interference of Labor.

They regret that in recent years social dialogue has been used for political reasons and not for the common good. The SMEs’ claim coincides in time and form with the tension generated at the social dialogue table by the aforementioned reform. “We ask for an end to government control of the internal organisation of companies,” they complain. The employers’ association has refused to present a proposal and is now making this manifesto. They ask for respect for social dialogue and collective bargaining. And, from the Government, more responsibility.

“We demand an end to government control over the internal organisation of companies”

Businessmen believe that the Government is placing on them the weight of a policy of increasing costs, bureaucratic, fiscal and social burdens. In addition, they suffer from a stigmatisation of the company and the figure of the entrepreneur based on the pursuit of profits, profitability and business success. They claim the effort and role of the company in society and the economy.

A Díaz is accused of not carrying out a fair analysis of productivity, labour costs or vulnerability of the sectors most affected by the reform of the working day that it wants to implement. “It represents political interference that ignores the reality of the Spanish productive fabric,” they denounce. “We ask that electoral interests not be applied to decisions that have a direct impact on the productivity and operation of many companies,” they add.

Control, overregulation and rigidity

They denounce the “drip of control measures, supervision and sanctions whose origin is the distrust towards the compliance of the employer’s rules.” They feel that a principle of guilt in the heat of the proliferation of interventionism with regulations, records or plans that lack effectiveness beyond increasing the bureaucratic burden.

“We are calling for the government to cease its interference in the internal functioning and organisation of the company and for its flexibility to be guaranteed. Moving away from the European model of flexibility is a mistake that all Spanish citizens will end up paying for,” they say.

At this point they include several aspects that “restrict flexibility”, such as increasing the cost of dismissal, extending the causes of nullity for terminations or intervening in payrolls through the minimum wage or the significant rise in labour costs in recent years. “Dictating the internal functioning of companies from the government sphere means violating property rights, restricting decisions and the ability to respond to an environment in constant change,” they say.

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